Fed’s Beige Book predicts further uncertainty for the housing market

By Connie Kim
Housing Wire
December 2, 2022
Category: Finance & Economics
Region: United States

Interest rates and inflation continued to dampen activity in the housing market across all 12 Federal Reservedistricts, according to the Fed’s latest Beige Book. “Higher interest rates further dented home sales, which declined at a moderate pace overall but fell steeply in some Districts,” the report states, noting that “residential construction slid further at a modest pace” and “home prices grew less rapidly or declined outright amid weak demand.” …Fannie Mae also had a gloomy outlook for the housing market next year, citing lower home sales and mortgage origination activity compared to 2022 amid elevated mortgage rates. Single-family home sales are projected to drop to 4.42 million in 2023 from 5.67 million this year, and mortgage origination activity is forecasted to slip to $1.74 trillion from $2.34 trillion.

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