Posted To: MND NewsWire

The rapid run up in house prices may be starting to exhaust potential homebuyers according to the quarterly forecast from Freddie Mac’s Economic and Housing Research (EHR) Group. The economists say recent indications are of softening demand in home purchase mortgage applications, and the pace of sales, while still elevated from before the pandemic, have cooled since the first of the year and have been slowing for the last four months. Accordingly, the EHR Group is forecasting home sales will decline to 6.9 million from seasonally adjusted rates of 7.6 million in the fourth quarter of 2020 and 7.2 million in Q1 of 2021. They also expect home prices to moderate from the 17 percent year-over-year gains reported in the May release of Freddie Mac’s House Pire Index (FMHPI), the highest growth in…(read more)

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Source: Mortgage News Daily