Home Prices May be ‘Exhausting’ Buyers

Mortgage News Daily, July 16, 2021–Jann Swanson
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 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.