US home sales are expected to rise 7.1% in 2021 and cool in the next 2 years – Money Times

House for sale in To us It is expected to close at 7.1% by 2021, but limited supply and higher mortgage rates and prices are forecast to slow over the next two years as the housing market cools, Fannie Mae predicted on Monday.

The company’s U.S. Government Strategic and Economic Research Group has raised its forecast for home sales growth for 2021 from 5.3%, with a strong increase in home purchases expected later this year. The 7.1% gain will be slightly lower than the 7.3% increase recorded in 2020.

However, due to limited supply and other factors, home sales are forecast to decline by 1.4% next year and by 3.8% in 2023.

“The expectation that mortgage rates will continue to rise in 2022, averaging 3.2% in 2022, as well as a further increase in home prices should boost affordable prices on home sales in the new year,” Fannie May said in a statement. .