The rapid run up in house prices may be starting to exhaust potential
homebuyers according to the quarterly forecast from Freddie Mac’s Economic and
Housing Research (EHR) Group. The economists say recent indications are of
softening demand in home purchase mortgage applications, and the pace of sales,
while still elevated from before the pandemic, have cooled since the first of
the year and have been slowing for the last four months. Accordingly, the EHR
Group is forecasting home sales will decline to 6.9 million from seasonally
adjusted rates of 7.6 million in the fourth quarter of 2020 and 7.2 million in
Q1 of 2021.

 

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