Fannie Mae Foresees Gradual Home Sales Revival In 2024

The Economic and Strategic Research Group at Fannie Mae predicts a gradual revival in single-family home sales in the coming year, aligned with an increase in mortgage origination activity due to lower mortgage rates. However, challenges such as affordability, the lock-in effect, and a shortage of available homes are expected to persist into 2024. The group also forecasts a minor downturn in 2024 followed by a return to growth in 2025. Concerns remain regarding consumer spending and the effects of restrictive monetary policy.