More details: Did the delta option threaten US job growth in July?
Single-family home sales are forecast to decline due to continued stock and supply chain restrictions. The group’s projected total sales for the end of the year fell from the 6.71 million projected last month to 6.66 million, still up 3.1% from 2020.
At interest rates below 3%, Fannie expects the share of refinancing in mortgage lending activities to be 58% in 2021, up from 56% last month, before dropping to 41% in 2022. In addition, house prices are expected to rise by 14.8% in 2022. 2021
“For the housing market, at current business levels, the lack of stocks of homes for sale and the continuing supply chain bottlenecks faced by developers remain major constraints to buying. Moreover, while mortgage rates have come down and theoretically provide more purchasing power for potential borrowers, in practice, given the current supply and affordability issues, we expect this benefit to be limited, ”Palim said.