Skip to main content

Fannie Revised Its Forecast With The Onset Of New Covid Variant

 

There are growing concerns among experts as to how the new coronavirus Delta variant will impact economic activity. There’s no need to be alarmed yet feels the Fannie Mae’s Economic and Strategic Research (ESR) Group.

In August the group reduced its economic growth forecast for the year 2021 from 7% in July to 6.3%.

Fannie said this revision is with the expectation that the virus would disrupt consumer spending and supply chains might affect the economic activity in the second half of 2021. They have offset the decrease by upgrading the 2022 growth forecast, from 2.8% to 3.2%.

The recent surge of COVID cases appears to be affecting consumer behavior, said Mark Palim, vice president and deputy chief economist at Fannie Mae.

Due to ongoing inventory and supply chain shortage, single-family home sales will drop says the report from the outlook.

The total sales projected for the rest of the year dropped to 6.66 million from last month’s forecasted 6.71 million this still is a 3.1% increase from 2020.

Because the interest rates are revolving around 3%, the group expects the refinance share of mortgage origination activity to be 58% in 2021. Home prices are expected to soar 14.8% this year.

Reference Source: MPA

https://www.compareclosing.com/mortgagenews/fannie-revised-its-forecast-with-the-onset-of-new-covid-variant/

Comments

Post a Comment

Popular posts from this blog

What is an Appraisal Contingency? — Best Guide for Homebuyers

  About Appraisal Contingency If a home is appraised for less than the purchase price included in the contract then there is a provision that is included in the purchase contract allowing homebuyers to back out of their contract this is termed as an  appraisal contingency  clause. Buyers who use financing to buy a house or are  buying homes  in areas where prices are volatile commonly use Appraisal contingencies. How do Appraisal Contingencies work? Purchase offers have appraisal contingencies inserted into them to notify the seller that the buyer intends to have the property appraised as part of their purchase for the financing process. If th e  property doesn’t appraise for the amount the buyer offered to pay then this contingency allows them the option of backing out of the contract without losing their earnest money deposit or facing other penalties. During an appraisal, a licensed professional is hired by the homebuyer to examine the property and evalu...
Post a Comment
Read more

Public Feedback Requested By CFPB

  The Home Mortgage Disclosure Act underwent certain changes and to evaluate whether it is meeting the stated goals of detecting discrimination in mortgage lending the  Consumer Financial Protection Bureau  is seeking comments. The CFPB requests for assessment of the mortgage disclosure law and checks if it meets the objectives of the  Dodd-Frank Act . To abolish discrimination in mortgage lending in 1975 the Congress enacted . The bureau said the request comes after an August report found that mortgage lenders as compared to white applicants were charging higher interest rates and denying credit to Black and Hispanic applicants. The   bureau said that with this evaluation the CFPB will be able to maintain a fair, competitive, and non-discriminatory mortgage market. They added that the assessment is an opportunity for the Bureau to get an idea if the earlier HMDA rulemakings have improved upon the data collected, thereby reducing loans on financial institutions,...
Post a Comment
Read more

What is Fannie Mae and Freddie Mac?

Understanding  Fannie Mae  And  Freddie Mac What is Fannie Mae and Freddie Mac? Fannie Mae or FNMA  is a nickname for Federal National Mortgage Association. It was established in 1938. It is a Government-sponsored Enterprise (GSE). In 1968, Fannie Mae ceased to exist as a government entity and became quasi-governmental, federally charted corporation to buy mortgages other than those insured by the Federal Housing Administration, otherwise known as FHA. Freddie Mac or FHLMC  is a nickname for Federal Home Loan Mortgage Corporation. Freddie Mac is also a government-sponsored enterprise (GSE) which was brought into existence in the year 1970 by the Congress. It provides competition to Fannie Mae and provides funds availability in the secondary mortgage market. What is Fannie Mae's and Freddie Mac's Role? Fannie Mae’s purpose is to create a secondary market for the purchase and sale of mortgages.  The secondary mortgage market ...
Post a Comment
Read more

Ultimate Guide About Lease Option With Its Pros And Cons

  About Lease Options When you are looking to buy a home there are a lot of things that a buyer needs to be prepared with like a good credit score, down payment, and commitment to ownership. However, what if you don’t have a  credit score  that could qualify you for a mortgage? Or what if you don’t have enough money for the down payment to  purchase the property ? There is a way you can prepare to buy that home through the lease option. In this post, we will understand what is a lease option and how it works. What Is A Lease Option in Real Estate? A lease option is an agreement or a contract through which a tenant can purchase a property in the future based on today’s market price once the lease ends. A lease with the option to buy also gives the tenant / potential buyer time to build credit and save money for the down payment to buy the property. Once you enter into a lease option, it prevents the seller to accept any future orders from other buyers. A lease option ...
Post a Comment
Read more