Fannie Mae decreased its 2018 origination forecast for the fourth time this year in anticipation of more upward pressure on rates, and housing weakness that persists despite increased overall economic strength.
Homebuilding industry leaders are pledging to train more laborers as part of an executive order from President Trump, marking an important step forward for the residential construction sector.
There is an opportunity for home sales to break out of the doldrums if price appreciation slows, mortgage rates remain flat and supply increases, Freddie Mac said.
Fewer sales of existing homes and uncertainty around future fiscal policies will result in fewer mortgage originations than previously expected, according to Fannie Mae.
Freddie Mac's economists took a more bullish outlook than others on the 2018 mortgage market, raising its forecast by $30 billion citing higher-than-projected refinance activity.
Fannie Mae reduced its mortgage origination volume forecast for 2018 and 2019 as rising interest rates are affecting refinancings now, and will curtail purchase activity going forward.
Fannie Mae increased its second-quarter mortgage origination projection by $7 billion as refinance volume is remaining stronger than previously expected.
After narrowing its search to 20 cities, housing experts predict Amazon will choose Atlanta or Northern Virginia as its second headquarters, which will have a profound impact on both housing and the economy in and around the chosen city.
