Warning: Undefined variable $custom_content in /home4/comcompare/public_html/mortgagenews/wp-content/plugins/code-snippets/php/snippet-ops.php(582) : eval()'d code on line 10
There are growing concerns among experts as to how the new coronavirus Delta variant will impact economic activity. There’s no need to be alarmed yet feels the Fannie Mae’s Economic and Strategic Research (ESR) Group.
In August the group reduced its economic growth forecast for the year 2021 from 7% in July to 6.3%.
Fannie said this revision is with the expectation that the virus would disrupt consumer spending and supply chains might affect the economic activity in the second half of 2021. They have offset the decrease by upgrading the 2022 growth forecast, from 2.8% to 3.2%.
The recent surge of COVID cases appears to be affecting consumer behavior, said Mark Palim, vice president and deputy chief economist at Fannie Mae.
Due to ongoing inventory and supply chain shortage, single-family home sales will drop says the report from the outlook.
The total sales projected for the rest of the year dropped to 6.66 million from last month’s forecasted 6.71 million this still is a 3.1% increase from 2020.
Because the interest rates are revolving around 3%, the group expects the refinance share of mortgage origination activity to be 58% in 2021. Home prices are expected to soar 14.8% this year.
Reference Source: MPA
