Fannie Mae Sees Dark Days Ahead For Housing

 

 

Fannie Mae Sees Dark Days Ahead For Housing

 

Fannie Mae sees dark days ahead for the housing market It will get worse for the housing market – and mortgage industry – before it gets better.  That’s the takeaway from a group of economists at Fannie Mae who slashed their forecast for 2022 home sales this week. "Housing remains clearly on the downtrend — and has been for several months now — due to the combined effects of outsized home price increases and the significant and rapid run-up in mortgage rates," Fannie Mae’s Chief Economist Doug Duncan said in a statement. Fannie Mae forecasters said that despite mortgage rates settling in the low 5% range over the past month, recent incoming data has led them to revising the home sales forecast, notably because of a drop in new home sales. New home sales are now projected to fall 18% from last year, while existing home sales are expected to fall by 16% in 2022 to 5.143 million