Fannie, Freddie Cut Forecasts on Slow Start to 2014 US Housing Market

Fannie Mae expects housing starts to rise to about 1.05 million units in 2014 -- an increase from 2013, but 50,000 fewer starts than initially forecast for this year

Freddie Mac and Fannie Mae have both lowered forecasts for the U.S. housing market in 2014, coming off a slow first quarter for the market.

On Monday, Fannie Mae cut its housing-starts expectations 50,000 units to approximately 1.05 million units in 2014 (see the Fannie Mae press release).

“We have downgraded our housing forecast slightly due to a lackluster sales picture, but the recent loss of momentum is likely a temporary one,” said Fannie Mae Chief Economist Doug Duncan. "While existing home sales have remained essentially flat, we continue to believe that new home sales will increase at a double-digit pace.”

Last Friday, Freddie Mac cut its 2014 home sales forecast from an initial estimate of 5.6 million to 5.5 million.

(more on Freddie/Fannie housing-outlook downgrades . . . )

 

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