Fannie Mae downgrades housing forecast

Fannie Mae downgrades housing forecast After a torrid start to the year, the housing market may not see as big a 2021 boom as originally projected by some experts. Citing a continued dearth of inventory, constrained by homebuilding challenges, Fannie Mae has downgraded its 2021 home sales forecast from a 6.3 percent increase over 2020 to a 4.2 percent increase to 5.49 million single-family home sales. The economy, and real estate, continues to fly high, but inflation, higher prices, and homebuilding challenges, are beginning to emerge as the limiting reagents of the housing market. As these factors evolve, the outlook will undoubtedly shift further as the year progresses.