Lee Honish | Honishreport

Housing market is headed for a slowdown say Fannie, Freddie•Rising mortgage rates cause Fannie Mae and Freddie Mac to downwardly revise forecastoWho are Fannie mae and Freddie Mac•The economy is improving, homebuyer demand remains strong and COVID-era restrictions are easing, but mortgage giants Fannie Mae and Freddie Mac each predicted a slowdown in the housing market as mortgage originations decrease in 2021. •Fannie Mae revised its forecast down to predict mortgage originations will drop from 4.5 trillion in 2020 to just under 4 trillion this year and to just under 3 trillion in 2022.•Fannie Mae stated that while housing demand remains strong•Additionally, given the continued supply-demand imbalance, home prices are forecast to rise 8 percent in 2021 – up from the previously forecasted 4.2 percent – before decelerating to 2.9 percent annualized in 2022•Fannie Mae’s full-year 2021 real GDP growth expectations improved to 6.8 percent, including 9.1 percent annualized growth in the second quarter, due primari