Housing market should 'cool off' later in year, Moody's economist Zandi says

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Moody's Analytics chief economist Mark Zandi discussed the housing market on CNBC's 'Power Lunch.'

have taken advantage of forbearance programs that allow borrowers to miss mortgage payments, helping to insulate the housing market from a historic rise in unemployment.

Meanwhile, concerns about the coronavirus have sparked increased interest for homes in suburban and rural areas, according to, leading to demand outstripping supply. More construction, particularly in the lower and middle areas of the price distribution, is needed to help the supply issues, Zandi said.That lack of supply is one reason thateven though new home sales have jumped, Zandi said.

Zandi stressed that he does not expect a sharp downturn for the sector, saying the housing market has "navigated the pandemic remarkably well, and there are some very solid underpinnings. It's just going to cool off a bit later this year."has risen more than 80% since March 23 and is now slightly positive for the year.

 

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Grab some $NVUS

Has an economist ever been right ?

Cool off? That's putting it mildly. It's going to crash.

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