Posted To: MND NewsWire

Like most recent economic forecasts, that one from Fannie Mae’s Economic and Strategic Research (ESR) group for July continues to project a pull-back in recent inflation numbers. This time there seems to be a little hedging, but there is little of that in the housing portion of the report. According to the Federal Housing Finance Agency (FHFA) Purchase-Only Index, house prices rose 15.7 percent in April from a year prior, the fastest annual growth rate since the beginning of the index in 1991 . Consequently, the company significantly upgraded its quarterly house price forecast, projecting that the FHFA index will increase by 14.8 percent in 2021, up from the prior forecast of 8.0 percent. Given the combination of affordability constraints weighing on demand and an end to what may be the pulling…(read more)

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Source: Mortgage News Daily