Columbia’s mortgage company Fannie Mae says US home sales to surge 7.1% in ‘21

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Columbia’s mortgage company Fannie Mae says US home sales to surge 7.1% in ‘21

Fannie Mae, the 84-year-old US Federal National Mortgage Association, headquartered on Washington DC, said in a statement on Monday that US homebuilding market would witness a torrential high-tide on fourth quarter, which eventually would spur up home sales across the country by 7.1 per cent in 2021 on a year-on-year basis, however, the Government-sponsored home loan company also had forecasted a decline in US home sales over next couple of years as a sharply squeezed supply chain coupled with a step-up in mortgage rates alongside record home prices, would pour fresh scorns on potential homebuyers’ morale.

Aside from that, latest upbeat 2021 US home sales forecast from Fannie Mae’s Economic and Strategic Research Group came against the backdrop of a prior growth projection of 5.3 per cent made earlier in the year, though the home loan company on Monday had projected a strong year-end spike in home-buying frenzy which in effect would stem a 7.1 per cent jump in 2021 US home sales following a 7.3 per cent leap logged a year earlier.

Fannie Mac forecasts decline in US home sales over 2022 & 2023

Nonetheless, latest Fannie Mae forecast on US home sales had unfurled that the world’s largest economy would likely to witness a decline of 1.4 per cent and a 3.8 per cent in home sales over 2022 and 2023 respectively.

Meanwhile, citing its latest projection was mostly prompted by expectations that the US Fed would hike its benchmark borrowing cost at least thrice each in 2022 and 2023, Fannie Mae said in a statement, “The expectation that mortgage rates will continue to drift upward, averaging 3.2% in 2022, coupled with additional home price appreciation, are likely to make affordability a growing constraint on home sales in the new year”.