Mortgage Blog

Fannie Mae adjusted the forecasts of loan origination for 2018, 2019

May 17th, 2018 12:41 PM by Eric Fang

The 2018 forecast was cut to $1.667 trillion from April's forecast of $1.69 trillion. In 2019, Fannie is now projecting $1.67 trillion of originations, down from its prior forecast of $1.686 trillion.

30 yr fixed interest rates are expected over 4.5% for 2018 and 2019.

"We remain confident that, despite a first-quarter hiccup, economic growth will pick up through the rest of 2018. There are signs that consumer spending is poised to strengthen in the months ahead, and we believe recent fiscal policy actions are likely to contribute to growth this year," said Fannie Mae Chief Economist Doug Duncan in a press release.

"Come 2019, however, we expect the fiscal boost to fade, and we adjusted our forecast lower accordingly. Meanwhile, housing's upward grind should continue, despite a lackluster first quarter. We expect home sales to post modest gains both this year and next, as prices rise and affordability declines amid low for-sale inventory."

Posted in:General
Posted by Eric Fang on May 17th, 2018 12:41 PM



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