Fannie Mae Forecasts Mild Recession in 2024, Slowing Home Sales Due to High Mortgage Rates

Fannie Mae predicts a mild recession in early 2024 due to slowing consumer spending and previous Fed interest rate hikes taking effect.

Home prices remain high despite affordability issues, with mortgage rates topping 7% and expected to stay elevated into 2024.

Total home sales forecast to be the slowest since 2011, with mortgage originations also dropping due to high rates.

Supply issues persist as homeowners with low rates are reluctant to sell, constraining inventory.

Over 89% of homeowners would consider moving in the next year if rates dropped below 6%, potentially increasing housing supply.