The U.S. economy is booming right now, unemployment is hovering below 4.0 percent and interest in buying a home — especially at the entry–level portion of the market — is very strong.
Typically, these favorable conditions would be generating a very active housing market with increasing home sales and a significant uptick in new home construction to keep up with demand.
That is not happening this year. Prospective homebuyers are struggling to enter the market, as lean inventories limit their choices and higher mortgage rates and home prices chip away at their budgets. And homebuilders, facing escalating material and labor costs, continue to have difficulties building enough new homes.
With only three months left before the calendar turns to 2019, will the economy keep chugging along at a robust pace, helping to fuel a fourth quarter comeback for the housing market?
Here’s what Chief Economist Sam Khater and his team are forecasting for the rest of the year:
For complete graphical and textual analysis of what Freddie Mac sees for the housing market and economy heading into 2019, visit our recent Forecasts.
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