Mortgage

Fannie Mae will increase development estimate citing stronger knowledge for brand spanking new properties

The projections for the mortgage volume look a little higher given the renewed strength of some residential properties, reported Fannie Mae on Friday.

The latest forecast from the government-sponsored company now puts a year of nearly $ 4 trillion in 2021, compared to an estimated $ 3.93 trillion in sharp rebound last month.

The rise in the estimate for the second quarter from nearly $ 1.1 trillion to nearly $ 1.15 trillion suggests that despite a temporary spike in interest rates that has stifled some application activity, the origins of this fiscal period are slightly better could be than last year and not about the same.

"Despite recent hikes, mortgage rates remain near historic lows that we expect will help sustain strong residential demand in 2021," said Doug Duncan, chief economist at Fannie Mae, in a press release.

Fannie revised his purchase origination estimate for the second quarter of 21 from $ 514 billion to $ 539 billion and his refinance forecast from $ 583 billion to $ 607 billion because of optimism about new home supplies and interest rates has risen.

While Fannie's forecast suggests the outlook has improved in the short term, the 2021 forecast remains lower than the record-breaking $ 4.5 trillion for 2020, as the government-sponsored company's economics team anticipates relatively higher rates this year and a limited supply of home ownership will pose restrictions.

While Fannie Mae made this upward revision of new home forecasts, she also made a smaller downward change in her resale numbers in the last forecast.

Some other industry forecasts suggest the volume could be lower this year than Fannie projects. For example, Freddie Mac recently estimated that the origins would total $ 3.48 trillion in 2021.

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