Fannie: Home sales to drop 15% due to coronavirus, refis gain steam

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New commentary from the Fannie Mae Economic and Strategic Research (ESR) Group is projecting a near-15% decline in home sales in 2020 as the coronavirus pandemic continues to take its toll on the American economy. Despite the decrease in purchases, Fannie still expects single-family mortgage originations to grow year over year, thanks to a busy refinance market. With low rates expected to continue supporting strong refi volume, Fannie revised its refinance forecast upward by about $240 billion from last month’s estimate. Refinances are now anticipated to grow from $1.01 trillion last year to $1.41 trillion this year, making up 56% of 2020’s projected origination volume. Total volume for the year is predicted at $2.52 trillion, up from $2.30 trillion in 2019.

Read the complete article from Scotsman Guide here.