The red-hot Boston Suburb housing market could be heading for a slight slowdown, according to Fannie Mae and Freddie Mac.
Fannie Mae projects that mortgage originations will fall to $4 trillion this year from $4.5 trillion in 2020, Inman reported. Next year, the agency expects originations will drop even further to just below $3 trillion.
- Mortgage requests refinancings continue to drop
- Good news march housing starts soar 19%
- Institutional investors higher material costs lead to rising home prices
Freddie Mac’s economists said the slowdown will be caused by a hike in mortgage rates and limits on housing supply, which may eventually lead to a slowdown in home prices. Those are projected to rise 6.6 percent this year before slowing to 4.4 percent in 2022, according to Freddie Mac.
The housing giants are bullish on the U.S. economy. Fannie Mae expects real GDP growth to be 6.8 percent, including 9.1 percent in the second quarter, as more people are vaccinated and states and cities ease restrictions.
[Inman] — Keith Larsen
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