Fannie Mae's 2024 Outlook: Housing Market Navigates Challenges With Emerging Resilience
Portfolio Pulse from Surbhi Jain
Fannie Mae forecasts a slight GDP decline of 0.3% in 2024 with a recovery in 2025. The housing market is expected to show resilience with slow recovery in home sales and mortgage originations. The Economic & Strategic Research Group at Fannie Mae presented this outlook. ETFs like VNQ, SCHH, XLRE, and IYR offer exposure to the real estate sector. Mortgage rates are predicted to average 6.7% in 2024, with a modest increase in home sales.

December 27, 2023 | 1:15 pm
News sentiment analysis
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NEUTRAL IMPACT
Fannie Mae's forecast of a slight GDP decline and a resilient housing market in 2024 may influence investor sentiment, potentially affecting FNMA's stock performance.
As the primary source of the housing market forecast, Fannie Mae's stock may see investor sentiment shift based on these projections. However, the overall neutral outlook with a slight GDP decline balanced by a resilient housing market leads to a neutral score.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
iShares U.S. Real Estate ETF could be positively influenced by Fannie Mae's housing market outlook, indicating a potential recovery in the sector.
IYR stands to gain from the positive outlook on the housing market provided by Fannie Mae, as it may lead to increased investor interest in real estate ETFs. The forecast of a recovery in the housing market is likely to be seen as a positive driver for IYR's performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Schwab US REIT ETF could see a positive impact from Fannie Mae's outlook, suggesting a steady recovery in the housing market that may benefit SCHH.
SCHH, which invests in REITs, could benefit from the anticipated resilience and recovery in the housing market as forecasted by Fannie Mae. This could lead to a positive impact on SCHH's performance in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The Vanguard Real Estate ETF may be impacted by Fannie Mae's housing market outlook, with potential resilience in the sector influencing VNQ's performance.
VNQ, as a real estate ETF, is likely to be positively impacted by a resilient housing market forecast. The expectation of a recovery in home sales and mortgage originations could lead to increased investor confidence in real estate ETFs like VNQ.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Real Estate Select Sector SPDR ETF may experience a positive short-term impact due to Fannie Mae's forecast of a resilient housing market in 2024.
XLRE could see a positive impact from the forecasted resilience in the housing market, as it is directly related to the real estate sector's performance. The ETF's holdings may benefit from the expected recovery in home sales and mortgage originations.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70