Fannie Mae ups its outlook for home sales
Published: July 23, 2015
WASHINGTON (MarketWatch)—Mortgage-finance giant Fannie Mae raised its 2015 forecast for U.S. home sales on Thursday, chiming in with other economists who see the market ramping up this year.
Fannie FNMA, -1.55% now expects total home sales in 2015 to hit an eight-year high of 5.75 million, according to the company’s July forecast. Fannie’s June estimate pegged 2015 home sales at 5.65 million.
The company raised its forecast for sales of new single-family homes, as well as used residences.
“We expect to see strong sales, lean inventories, and rising confidence through the rest of the year, which should support increased home-building activity and give an added boost to economic growth,” said Doug Duncan, Fannie’s chief economist.
Fannie’s outlook tweak comes on the heels of the Mortgage Bankers Association pumping up its forecast for new home-purchase mortgages to $801 billion this year, up $71 billion from its prior estimate. In 2014 purchase-mortgage originations hit $638 billion.
“The housing market recovery has shifted to a higher gear,” MBA economists wrote. “More sales are being financed, and more applications are being approved. And we expect that this trend will continue into 2016 and beyond, as the broader economy and job market continue to improve.”
Sales figures for used homes, the bulk of the market, show that purchases recently hit the fastest pace since early 2007. The Great Recession started later that year.
Some of the recent buying growth may reflect buyers rushing to lock in mortgage rates before they rise further, and economists said the recent flurry of activity isn’t sustainable. Even if purchase rates pull back in upcoming data releases, economists do expect home sales to trend higher as the jobs market and larger economy continue to firm.
Read more: Existing homes sell at fastest pace in more than eight years
However, the housing sector also faces challenges. While a growing economy is helping more borrowers afford loans, some say lenders’ strict credit standards are making it too tough for young families and others to qualify for credit. Also, there are still pools of deeply distressed borrowers in the country.
Read all about it;
Fannie Mae ups its outlook for home sales
And then there’s this from Reuters;
U.S. home sales approach eight-and-a-half-year high, prices surge
U.S. home resales rose in June to their highest level in nearly 8-1/2 years, a sign of pent-up demand that should buoy the housing market recovery and likely keep the Federal Reserve on track to raise interest rates later this year.
The National Association of Realtors said on Wednesday existing home sales increased 3.2 percent to an annual rate of 5.49 million units, the highest level since February 2007.
"The economy really has the wind at its back now," said Chris Rupkey, chief financial economist at MUFG Union Bank in New York.
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Here in the Catalina Foothills we’re experiencing a similar growth in home sales.
YTD - 498 single family homes have sold. Except for 2013 (with 545 sales) this is the highest number of homes sold since 2006 (511 sales) during the same Jan – July period. Here’s hoping it continues.
Recently I’ve met with a few of the top remodeling contractors in Tucson and all of them report that they’re busier now than they have been in years. So busy that they’re having a hard time keeping up with the demand. And that’s an exceptionally good measure of the mood of homeowners.
see TheFoothillsToday.com
to find your very own Catalina Foothills Home
