Fannie Mae released its Economic & Housing Outlook for March revealing that the economic recovery kicks into high gear while the housing market faces continued tight supply. Fannie Mae is forecasting that Gross Domestic Product to rise by 6.8% in 2021 and 3% in 2022. Total annual home sales are expected to increase by 6.2% higher than 2020. Fannie Mae's quarterly home price forecast is now at a gain of 8% in 2021 (previously 4.2%), followed by a deceleration to 2.9% in 2022 (previously 2.5%). Overall single-family mortgage market originations in 2021 and 2022 to total $4.0 trillion and $3.0 trillion, up from $3.9 trillion and $2.9 trillion, respectively.
After the big surge earlier in the year, gas prices have leveled off though they are much higher than last year this time. Due to a ramp up in refinery utilization, which is back to pre-pandemic levels, and higher gasoline stocks, prices have been mostly flat for the past 2-3 weeks. Motor Club AAA reports that the national average price for a regular gallon of gasoline is at $2.87, unchanged from a month ago but up from $1.81 a year ago. A AAA spokesperson says prices could inch higher in the coming weeks.
Housing market faces tight supply. Total mortgage originations to remain strong. Gas prices steady.
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