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Woodland Developments & Realty Recent News

Improving Affordability Boosts Housing Forecast

Posted: August 1, 2019

Obviously, there's a link between the economy and housing market. When the economy isn't doing well, it tends to affect people's money and confidence. And, if people aren't feeling financially secure, that can lead them to put off making a major purchase like buying a home. After all, no one wants to buy a home right before the economy tanks and prices crash. But, according to the most recent outlook from Fannie Mae's Economic and Strategic Research Group, there are also times when that link isn't as direct. For example, the group - who's monthly forecast covers both the economy and housing market - says softening global economic conditions will lead to slower economic growth this year and in 2020. But though they believe the economy will slow, they are more positive when it comes to the housing market. "We expect housing to add to growth for the foreseeable future, and our projection of a 1.0 percent year-over-year increase in home sales in 2019 remains unchanged," Doug Duncan, Fannie Mae's chief economist said. "Moderating home price appreciation and attractive mortgage rates continue to support affordability, particularly as home builders are now paying more attention to the entry-level portion of the housing market." More here.