Fannie Mae’s Economic and Strategic Research Group releases a monthly outlook forecasting what the group believes is ahead for the economy and housing market. In October, the group says the economy is stronger than expected and should slow less than previously thought. The housing market, on the other hand, still depends a lot upon whether – and when – current homeowners decide to move. Doug Duncan, Fannie Mae’s senior vice president and chief economist, says affordability levels hinge on homeowners. “The timing of the long-expected pick-up in home sales activity, as well as a further moderation in home price appreciation, will depend in part on the willingness of current homeowners to relinquish their low mortgage rates by offering their homes for sale,” Duncan said. “Of course, continued strong homebuilding activity will also play a significant role as the shortage of national housing stock remains the primary impediment to affordability.” In other words, as more homes become available for sale – both old and new – buyers will begin to see better deals. (source)
