Fannie Mae Sees Sharp Slowing in House Price Gains
Washington, DC, March 14, 2006--Mortgage finance giant Fannie Mae said house price increases should slow significantly in 2006, climbing just 3 percent instead of the double-digit rates recorded in recent years.
Fannie's estimate of house price appreciation falls below that of some economists and analysts. The National Association of Realtors, for example, earlier on Monday pegged home price appreciation at 5.8 percent in 2006.
Fannie CEO Dan Mudd, on a conference call with investors, said the housing sector has begun to transition after a years-long rally, in part due to the loss of investors in the market.
He said home sales in 2006 would fall 8 percent.
But he said the housing market would still post its third best year on record.
