Realogy CEO Ryan Schneider recently sat down with Doug Duncan, Fannie Mae’s chief economist, on the company’s latest Owner Update call. The pair discussed the housing market, covering areas of concern and opportunity, including mortgage rates and a housing bubbles.
Duncan said he expects 2021 to be a “very big, very strong year,” predicting existing-home sales to increase 5%, new-home sales to go up 13% or more and mortgage originations to come in at 1.9 trillion. He told Schneider the economy is accelerating, expecting 6.5 – 7% growth—the strongest for a year since 1983.
“You’ve likely got the media on speed dial asking the question about a bubble. Do you believe that, or is it supply/demand dynamics playing out?” asked Schneider.
Duncan said the housing market is fundamentally sound right now, though he’s following the Fed’s commentary on inflation premiums and rates and the potential outcomes for forbearances.
You can view the call below: