Current housing market dynamics continue to be fueled by the lack of existing homes available for sale, a trend that did not improve during the spring homebuying season, when more homes are typically put on the market. This has led Fannie Mae to revise its 2023 single-family originations forecast to $1.59 trillion, down from $1.65 trillion.

This lack of inventory has also resulted in the return of home price growth in recent months and has boosted new home construction, Fannie Mae‘s Economic and Strategic Research (ESR) Group said Monday.