"In general, we're in an economy that's doing well but slowing down a bit, and we expect that to continue into next year. We're not expecting a recession-that's not our baseline view-but lower growth," Leonard Kiefer, Freddie Mac's deputy chief economist, told ResiClub.
"Interest rates have moved higher relative to where they were a couple of years ago, creating affordability challenges. That, combined with a weaker economy, might result in a slight slowdown in housing demand-not a recession or declining prices, but a moderation," Kiefer explained.
"Our view is based on affordability measures, higher rates, and long-term fundamentals like income growth. Housing prices have outpaced these fundamentals, and we expect that to balance out with moderation in prices over time," Kiefer said.
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