As the final days of 2015 are approaching, the real estate housing market and economy are showing positive signals. Fannie Mae’s Economic & Strategic Research Group is forecasting a strong 4th quarter finish for the economy. Higher hourly earnings combined with lower unemployment statistics is leading to most folks feeling financially stable, which should encourage more spending.
This is good news for both the housing market and overall economy. Doug Duncan, chief economist at Fannie Mae, recently said, “Despite mixed housing and mortgage market data, our forecast for housing activity is little changed over the past two months. The supply of existing homes [for sale and condos for sale] remains lean amid slowing new single-family construction, putting significant upward pressure on home prices. While this helps boost home equity, it hurts affordability, especially for potential first-time home buyers.”
In other positive news, Fannie Mae is predicting minor gradual mortgage rate increases next year and believes increased household incomes will somewhat offset the impact of higher home prices.
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