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Home Sales Forecast Surges as Fannie Mae Revises Timelines

Home Sales Forecast Surges as Fannie Mae Revises Timelines

Fannie Mae jumped up its forecast for real GDP on a Q4/Q4 basis this week, revising it from 4.8 percent in last month's report to 5.5 percent. The company's economists said they believe this strength partially reflects a pulling forward of growth from 2022, so their estimate for next year has been revised downward by a half point to 3.2 percent. They also said that incoming data for both economic growth and home sales for 2021 were stronger than anticipated. "We continue to expect both to decelerate, but our prior call on the timing appears to have been premature," the December report says. Existing home sales moved higher in October, increasing 0.8 percent to an annualized 6.34 million units. Pending sales, a leading indicator of existing sales, rose 7.5 percent and purchase mortgag
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