The most recent outlook from Fannie Mae's Economic and Strategic Research Group has good news for potential home buyers. Released monthly, the group's outlook covers what they think is ahead for the overall economy and housing market. In December, the group sees change ahead for 2024. In fact, the outlook says the housing market will begin to recover, albeit slowly.
Doug Duncan, Fannie Mae's senior vice president and chief economist, says they expect more home sales next year but believe the rebound will be a gradual one. “While we think home sales will start to rise over the new year, the combination of modest increases in home prices and still-elevated interest rates suggest a slow pace of recovery from previously recessionary levels of housing activity,” Duncan said. Recently declining rates have helped boost mortgage application volume already and, with rates expected to improve further next year, there is good reason to believe demand from buyers will grow.
[Source: Fannie Mae]
