Freddie Mac is predicting this year’s home sales to come in just below last year’s level.
In the September edition of its monthly forecast, Freddie Mac
is stating that total home sales—covering both new and existing properties—will decrease by 0.9 percent from 6.12 million in 2017 to 6.07 million this year, while single-family first-lien mortgage originations will drop by roughly 9 percent this year to $1.65 trillion and home price growth will moderate to 5.5 percent. Freddie Mac added that the housing market has become stagnant despite a robust economy and vibrant job market.
“The spring and summer home buying and selling season ultimately ended up being a letdown, despite a faster growing economy and healthy demand for buying a home,” said Freddie Mac Chief Economist Sam Khater. “Unfortunately, too many would-be buyers continue to be tripped up by not enough affordable supply and the one-two punch of much higher home prices and mortgage rates. Prospective buyers are being squeezed the most where demand is the strongest: the entry-level portion of the market. While price appreciation is welcomingly starting to ease in many markets, weakening affordability continues to hamper overall activity.”