Fannie Mae released its May Economic & Housing Outlook last week saying that strong demand along with improved affordability points to a rebound in the housing market in 2019. Fannie Mae went on to say, "Pending sales and purchase mortgage applications are trending upward, while the lower mortgage rate environment and builders’ renewed focus on modestly sized homes are likely to support affordability."
On the economic front, Fannie Mae is forecasting full-year 2019 growth at 2.3%, after the strong, though likely unsustainable first-quarter growth of 3.2%. Fannie Mae does not expect the Federal Reserve to raise interest rates within its two-year horizon due to low inflation, the Fed's recent patient stance on monetary policy and a lack of optimism of a growth-inducing trade deal with China.
From Fannie Mae's website: Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. It partners with lenders to create housing opportunities for families across the country. Fannie Mae drives positive changes in housing finance to make the home buying process easier, while reducing costs and risk.
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