Stock Groups

U.S. home sales to rise 7.1% in 2021, fall next two years-Fannie Mae -Breaking

by Mike Robinson

[ad_1]

© Reuters. FILEPHOTO: An “For Sale” sign has been posted in front of a Queen Anne residence near Seattle’s Space Needle. It was taken on May 14, 2020. REUTERS/Karen Ducey/File Photo

CHICAGO (Reuters). Despite a 7.1% increase in home sales, the United States is expected to see a decline of 2.9% over the next two year. This was according to Fannie Mae, which said Monday that the limited supply along with rising mortgage rates and high prices will cool the residential property market.

Economic and Strategic Research Group, government-sponsored business, has raised its 2021 home growth projections from 5.3% to reflect an anticipated strong year-end increase in homebuying. This 7.1% rise would just be below 2020’s 7.3% increase.

The prediction showed that sales of homes would fall 1.4% next year because of limited listings. It also predicted that they would drop 3.8% in 2023.

Fannie Mae released a statement saying that the expectation of rising mortgage rates (averaging 3.2% per year in 2022) and increased home prices will make it more difficult to sell homes in the coming year.

In addition, the Federal Reserve will tighten its monetary policy in an effort to fight inflation.

Disclaimer: Fusion MediaWe remind you that this site does not contain accurate or real-time data. CFDs are stocks, futures, indexes or Forex. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. Because prices might not reflect the market, they may be incorrect. This means that prices cannot be considered indicative and are inappropriate for trading. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this information. This includes data including charts and buy/sell signal signals. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.

[ad_2]