The housing market is always evolving – and at different rates depending on where you live. Whether you’re looking at new home construction or mortgage rates, the numbers are always in flux. Because of this, Fannie Mae’s monthly Economic & Strategic Research Group releases a monthly Economic and Housing Outlook to analyze where things may be headed. According to their most recent release, it’s difficult to forecast how things may play out through the rest of this year. On the one hand, lower inventory and higher mortgage rates suggest that affordability conditions will make it tougher for buyers looking for a house this year. On the other, the job market, wages, and economic optimism have all been trending upward recently, which could help offset some of the challenges ahead for buyers. Overall, Doug Duncan, Fannie Mae’s chief economist, says housing should continue to grow. “We expect housing expansion to continue, albeit at a more moderate pace than last year given continued pressure on affordability,” Duncan said. “Depressed inventory, particularly in the more affordable segments, will likely constrain sales and push home price gains that outpace income growth.” The report notes, however, that early indicators show buyer demand is still strong. In fact, both pending home sales and demand for loans to buy homes have recently shown an upswing. More here.
