Housing Market Unlikely to Thaw in 2025 Due to Affordability Challenges and 'Lock-in Effect'
Portfolio Pulse from
Fannie Mae's Economic and Strategic Research Group predicts that the housing market will remain subdued in 2025 due to affordability issues and the 'lock-in effect'. Existing home sales are expected to rise slightly from recent lows. The broader economy is projected to grow at an above-trend pace through 2026 despite inflation and policy uncertainties.
December 16, 2024 | 1:45 pm
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NEUTRAL IMPACT
Fannie Mae's economists predict a subdued housing market in 2025 due to affordability challenges and the 'lock-in effect'. This could impact Fannie Mae's mortgage-related revenues and stock price.
Fannie Mae's prediction of a subdued housing market in 2025 suggests limited growth in mortgage origination, which could affect its revenues. However, the broader economic growth may offset some negative impacts, leading to a neutral short-term stock price impact.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80