Fannie Mae and Freddie Mac have issued their latest housing forecasts. The Fannie Mae forecast expects existing home sales to reach 5.14 million which is .2% below the 2009 totals. It expects 2011 sales to reach 5.46 million, a modest 5.6% increase. Home prices will go down 1.6% in 2010 and gain back that 1.6% in 2011. Fannie Mae expects loan originations to fall from $1.4 trillion in 2010 to $1.13 trillion in 2011.
Housing has traditionally played a major role in leading the economy out of recession; that will not be happening in the next 18 months according to Fannie Mae’s analysts.
Freddie Mac’s forecast is similar. There will be small set backs to match the small advances made over the past year leading to a zero sum game for the housing market as the nation struggles to get out of recession. Freddie Mac analysts note that the downs have been somewhat smaller than the upside changes in most markets, though progress is... Click here to read the rest of this article about housing market predictions
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