With
Compared to projections
Despite the increases in projected refinance volume and
"The easy part to forecast is purchases. The refinance side is much more sensitive to interest rates, but it's also sensitive to how interest rates impact the probability that people will act or the way in which they will act," Doug Duncan, Fannie Mae's senior vice president and chief economist, said in an interview. "There's like 10 different things that can happen and the combination in which they happen can go either direction. If
Fannie also increased its projections for housing starts. The new outlook shows 1.28 million in 2019, 1.36 million in 2020 and 1.42 million in 2021.
"Strong labor markets, rising wages and improved household balance sheets offer consumer spending upside potential, including the ability to withstand minor economic disruptions," Duncan said in a press release. "While we expect housing to regain its place as an economic-growth driver after a period of relative sluggishness, we recognize that the problems of affordability and inventory are likely to persist for the forecast horizon. Homebuilders have begun to accelerate the pace of single-family construction, including in the much-needed affordable space, but supply constraints still exist. In many areas, that