Housing market still showing a bright side

Housing market still showing a bright side

According to recent reports published by Fannie Mae and Freddie Mac, the economy is slowing heading into the fourth quarter of the year, which raises concerns about the housing recovery. The federal government shutdown, debt ceiling issues and economic uncertainty are targeted as factors that are weighing on consumer confidence. Despite the issues with the broader economy, both reports expect the housing market recovery to continue chugging along.

“On the bright side, these fiscal policy issues appear to have had only minimal effect on the housing market to date, which continues to improve overall,” said Fannie Mae Chief Economist Doug Duncan. “Notably, the rapid appreciation of home prices during the past year has contributed significantly to household net worth gains. Also, the Fed’s continuation of securities purchases will likely keep mortgage rates low, enabling more homeowners to take advantage of refinance opportunities.”