Monday Market Updates: 5 Key Take-A-Ways From Fannie Mae Press Release
The just released February 2024 Economic Outlook shows a glass half-full for housing.
The end of February brings what real estate industry professionals consider the start of the spring real estate market. While high rates and reluctant sellers defined much of the housing activity last year, a press release from Fannie Mae released just 3 days ago paints a more positive picture for 2024.
5 Key Take-A-Ways
#1: The Fannie Mae Home Purchase Sentiment Index® (HPSI) increased 3.5 points last month, the highest consumer confidence shown in housing since March 2022.
#2: The Fannie Mae Economic and Strategic Research (ESR) Group anticipates that mortgage rates will drop to 5.9% by the end of 2024 and 5.7% by the end of 2025.
#3: Single family housing starts (new homes) are expected to trend upward this year as permits have increased for 12 months and Fannie Mae asserts that ‘demand for new homes remains robust.’
#4: Total home sales in 2024 is projected to rise 5% to 5 million units, a mild increase from the last Fannie Mae forecast.
#5: The ESR Group also upgraded its 2024 macroeconomic growth outlook but still suggests that this year will have a slower pace of economic growth than 2023. While Q4 2023 ended with a stronger than expected GDP and population growth & immigration trends point to faster payroll and GDP growth, low savings rates and labor market softness indicate more cooling than warmth as far as an overall economic climate pattern.
While the surveys show more housing market optimism and the rates seem to be trending downward, how are you feeling about the market? Do any of the current indicators inspire you to stay, sell or dive into more data? Do you think inventory could finally loosen this year? No one knows the answers… but the questions keep us educated, empowered and eager to learn more.
Cheers to making the best decisions for you in 2024 and beyond!
Bobbi
Bobbi Decker
DRE#00607999
Broker Associate, Bobbi Decker & Associates
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650.577.3127 efax
www.bobbidecker.com
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