Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

"We also significantly upgraded our quarterly house price forecast, as measured by the FHFA Purchase-Only Index. We now project FHFA’s index to increase by 14.8 percent in 2021 on a Q4/Q4 basis, up from our prior forecast of 8.0 percent. We expect house price growth in 2022 to decelerate but still register a gain of 5.4 percent. We slightly downgraded our forecast for second and third quarter total home sales, driven by a weaker short-term outlook for the sale of new homes largely due to continued supply constraints affecting homebuilders. This was partially offset by a modest upward revision to second quarter existing home sales based on incoming data. We now expect 2021 total home sales to increase by 3.8 percent from 2020, compared to 4.2 percent in our June forecast. For new construction, we forecast 2021 housing starts to be 17.7 percent higher than in 2020, up from a 17.2 percent gain previously, driven by an upgrade to multifamily starts. Due to a stronger house price outlook and a modestly lower interest rate forecast, our 2021 mortgage originations forecast was upgraded to $4.2 trillion, up from $4.1 trillion. Both purchase and refinance originations contributed to the upgrade. Our forecast of 2022 originations ticked up to $3.2 trillion from a prior $3.1 trillion."

https://www.fanniemae.com/research-and-insights/forecast/economy-transition-inflationary-concerns-mount