Fannie Mae: Optimistic Outlook for Housing Market Recovery in 2024

18 January 2024 - 257 views

Fannie Mae’s Economic and Strategic Research Group predicts a gradual stabilization of the housing market in 2024, with potential improvements for homebuyers and sellers. They anticipate mortgage rates falling below 6%, leading to increased refinancing volumes and higher existing home sales. However, concerns about housing affordability remain, and the risk of a recession still exists. Overall, modest growth in the economy and improved financial conditions are expected to support the housing market’s recovery.

[Inflationary Scenario]
[Significance: Medium]

1. Fannie Mae predicts housing market stabilization in 2024, with potential improvements for homebuyers and sellers.
2. Mortgage rates are expected to fall below 6%, encouraging more homeowners to refinance and boosting the housing market.
3. Existing home sales are projected to increase from 3.8 million units in Q4 of the previous year to around 4.5 million units by Q4 2024.
4. Demand for new single-family homes is also expected to rise, but concerns about housing affordability remain.
5. While the risk of recession has not been eliminated, modest economic growth and increased personal income could support the housing market’s recovery.