Economic and Housing Weekly Note

In its Economic and Housing Weekly Note, Nathaniel Drake of Fannie’s Economic and Strategic Research Group said that the full effects of rising interest rates have “yet to be felt.” “Especially given that the full effects of the recent rise in mortgage rates have yet to be felt,  we expect existing home sales to continue to decline through 2022,” the note reads. “However, we believe there is still a pool of prospective buyers who were previously outbid but still want to purchase a home, which should help support sales, thus limiting the pace of slowdown in the near term.” Though demand remains elevated, there are signs that the hot housing market is cooling down. Existing home sales fell for the…