– **Fannie Mae Economists** have decided to take a sunny stroll on Positivity Lane, announcing that they are no longer expecting a recession. Just when we thought doom and gloom were the order of the day!
– Their **optimism tank** is full and overfloweth, with predictions that mortgage rates have more wiggle room and could potentially shimmy their way down below 6 percent. It’s like watching a limbo contest at a financial fiesta!
– The **Thumbs Up Squad** at Fannie Mae believes this downward mortgage slide is possible due to the Federal Reserve’s continual asset purchases, and the potential for inflation pressures to ease. They’ve apparently seen the ‘Ghost of Future Interest Rates’ and they seem to like what they’re seeing.
So, No Recession In Sight? Phew!
Key Takeaways and Hot Insights:
The economist squad at Fannie Mae has packed away their gloom-radar and are busting out the optimism binoculars, with no recession on their future forecast. It seems the gloomy cloud of recession that was looming large in their previous financial forecasts is now replaced with clear blue skies of….nope, still just finance stuff.
Mortgage Rates on a Limbo Contest
In other sizzling finance jamboree news, mortgage rates are apparently preparing for a limbo contest! This fun economic tidbit is based on the group’s predictions that the rates could slink below the 6 percent bar, making home owning dreams more achievable for many. If they continue their limbo levels at this rate, we’ll all be partying on our own patios in no time!
Inflation Pressure: Ready to Ease Its Foot on the Gas?
The Fannie Mae economists also fueled their hopeful engine with expectations that inflation pressures might ease the burn on our credit card statements soon, thanks evidently to the Federal Reserve’s continual asset purchases. The hidden pun here: ‘asset purchases’ is code for ‘free therapy for worried economists.’
Hot Take
In the wild and wacky world of real estate and business, it’s refreshing to hear that economists at Fannie Mae are predicting less tumultuous financial waters ahead. Watching finance predictions is a bit like watching a very slow, and somewhat boring, sporting event. So when the crowd goes wild about dropping mortgage rates and easing inflation pressures, we say grab a foam finger, throw on your team colors, and join the economic cheer squad!
Cheer up butterflies, Uncle Sam’s money-huggers are seeing blue skies and low bars ahead. And remember, when life gives you lemons, consider it a down payment on that home you’ve been eyeing!
Original article: https://www.inman.com/2024/01/18/falling-mortgage-rates-should-boost-home-sales-fannie-mae/