flexiblefullpage - default
Currently Reading

Fannie Mae's Take on the Future of US Home Sales

billboard - default

Fannie Mae's Take on the Future of US Home Sales

The recent forecast indicates slowing home sales, due to continuing mortgage rate increases accompanied by homebuyer hesitance

September 20, 2023
Red for-sale by owner sign outside of blue single-family house with white trim
Image: Monkey Business / stock.adobe.com

Home sales are poised to experience their most significant slowdown since 2011 amid a weakening U.S. economy. That’s according to a new forecast by Fannie Mae that anticipates home sales dropping to just 4.8 million in 2023, marking the slowest sales environment in more than a decade. 

That figure is expected to improve slightly in 2024, with total home sales reaching 4.9 million. High mortgage rates, with the average rate on the 30-year fixed mortgage recently rising to 7.18%, are contributing to a sales slowdown, Insider reports. 

The slump in sales is partly being influenced by high mortgage rates, with the average rate on the 30-year fixed mortgage rising to 7.18% over the last week, according to Freddie Mac data. That means prospective home buyers are facing the highest cost of borrowing since 2001, which has heavily hindered demand over the past year.

Those dynamics are also taking shape in the backdrop of a weakening US economy, which is poised to enter a slowdown within the first half of next year, Fannie Mae economists predicted. The Fed has aggressively hiked interest rates over the past year to lower inflation, a move experts have warned could drive the economy into a recession.

Read more


leaderboard2 - default

Related Stories

Housing Markets

The Best Places to Buy a Home During Fall

These housing markets offer greater inventory and more affordable list prices during the fall season

Market Data + Trends

Housing Market Hints at a Turning Point as Inventory Rises

Sales may be slowing, but according to one housing expert, fresh inventory could entice prospective buyers in 2024

Market Data + Trends

New Listings Are Increasing, Led by Florida Metros

Homeowners opting to sell before interest rates reach new highs are causing a slight uptick in new listings after months of historically low supply

boombox1 -
native1 - default
halfpage2 -

More in Category

Get your sales and marketing teams together to create and deliver a consistent brand message from start to finish

Pundits may not agree on the timing nor the severity of the next economic downturn, but one thing’s certain: these 10 essential tactics will boost your business' efficiency, productivity, and profit

A closer look at what’s propelling the adoption of off-site construction methods in home building

native2 - default
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.