Fannie Mae's Economic and Strategic Research Group sees little change ahead for the housing market, according to its most recent monthly forecast. The group's September release says they believe the economy will slow as we head into early 2024 but they see little downside risk to home sales due to continued demand from buyers.
In today's market, home sales are being driven more by life events than discretionary factors, the group says. That means demand should remain steady and – with the ongoing shortage of available homes for sale – it'll help support home values while also contributing to the strength of the new home market.
Doug Duncan, Fannie Mae's senior vice president and chief economist, says interest rate policy will keep things from changing too drastically in the near future. “We expect that total housing market activity will remain at a low level into 2024 as the Federal Reserve continues to hold the line on interest rates against inflation,” Duncan said.
[Source: PR Newswire]
