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Fannie Mae today said that the home sales across the country will decline over the next two years due to limited supply and rising prices and mortgage rates.
Fannie Mae’s Economic and Strategic Research Group raised its 2021 home sales growth projection from a prior 5.3% to 7.1%, because of a strong rise in home buying.
However, they predict the home sales to decline 1.4% in 2022 because of limited listings and other factors and are likely to fall further in 2023.
In its statement, Fannie Mae said that the expectation that mortgage rates will continue to go upward in 2022, along with the home price appreciation, will make it difficult to afford a home in the new year.
It added that the U.S. Federal Reserve tightening monetary policy to combat inflation will further slow down the sales activity.
Reference Source: Reuters
