4.26.21
Fannie Mae revised its outlook on housing and economic growth based on an uptick in March economic activity. The company now expects GDP to grow by 6.8% by the fourth quarter, up from 6.6%. The stronger economic forecast impacted Fannie Mae’s home sales and price expectations. Housing demand is expected to remain robust as mortgage rates remain near their historical lows. The company modestly raised expectations for new home sales and raised its home price forecast to 8.0% in 2021, from 4.2%, followed by a deceleration to 2.9% in 2022, from the previous 2.5%. In a prepared statement, Doug Duncan, Fannie Mae’s Senior Vice President and Chief Economist, stated Fannie Mae expects consumer demand and price gains will re-establish housing construction as a significant contributor to economic growth this year.