Fannie Mae's Economic and Strategic Research Group releases a monthly outlook detailing what they believe is ahead for the housing market and economy. The group forecasts everything from economic growth to home sales, mortgage rates, and home prices. According to the most recent release, affordability conditions are still holding home buyers back but the group sees improvement on the way. For one, better inflation numbers and a slowing labor market should lead the Federal Reserve to cut interest rates this fall, which will help tame mortgage rates. Doug Duncan, Fannie Mae's senior vice president and chief economist, says prices should also slow. “We continue to expect home price growth on a national level to decelerate – but remain positive – over the near term, but it should be noted that conditions often vary by region, particularly as it relates to supply,” Duncan says. For example, inventory remains tight in the Northeast and Midwest, while Sunbelt metros are now at, or above, pre-pandemic inventory levels.
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