US housing market defying crash expectations as supply shortage keeps prices high

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Fannie Mae economists projected that housing prices will fall less than previously expected amid high consumer demand and a worsening supply shortage.

Wells Fargo Investment Institute Head of Global Investment Strategy Paul Christopher joins 'Morning with Maria' to provide his outlook on the markets as the second quarter ends and the release of the May PCE.is defying expectations of a crash this year as limited inventory and high demand keep prices high.

The government-backed mortgage giant estimated that home prices will only decline by 1.2% in 2023 and 2.2% the following year – a marked improvement from February, when it predicted that prices would tumble 4.2% this year and another 2.3% in 2023. Sellers who locked in a low mortgage rate before the pandemic began have been reluctant to sell, leaving few options for eager would-be buyers.

 

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