Freddie Mac still predicts new home sales to drive 2018 growth

At the beginning of 2018, new home sales gave the year an unexpectedly low start, however Freddie Mac still believes they will push the housing market forward in 2018. In January, new home sales dropped 7.8% from December’s annual rate of 643,000 to 593,000, a move that the housing market wasn’t expecting. Now, the mortgage giant claims it is changing its forecast little from previous predictions, when it said new home sales are set to take over the housing market in 2018. “While existing home sales may struggle to top their best-in-over-a-decade 2017 performance, new home sales should provide enough growth to push total home sales in the U.S. modestly higher in 2018,” said Len Kiefer, Freddie Mac deputy chief economist.

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Source: Housing Wire