Challenges Unlikely To Derail Housing Market
In an interconnected world, events in other countries have an effect on our economy. That's certainly the case these days, according to Fannie Mae's Economic and Strategic Research Group's latest monthly outlook.
According to the group, the Russian invasion of Ukraine, along with existing supply-chain issues, has caused considerable downside risks to the U.S. economy and housing market. Fortunately for home buyers and sellers, though, Doug Duncan, Fannie Mae's senior vice president and chief economist, says the housing market should weather those risks more easily than other markets.
“Housing is currently acting as support to an otherwise slowing economy, although it is adding significantly to inflation,” Duncan says. “Even as interest rates are rising and reducing affordability, demographics are still strong supports for demand, and the paucity of existing home supply is supporting new construction and sales.”
Duncan believes demand for home purchase loans should hold up well in the current environment and adds that, even with rates rising, they're still well below what's been considered normal historically. * Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.