In the first of October Research’s economic series forecast webinars this year, Fannie Mae Senior Vice President and Chief Economist Douglas Duncan shared his outlook for the economy, housing and mortgage market for 2022.
This year’s theme could be, “The economy and housing to turn toward ‘new normal’ in 2022,” Duncan said.
“The key here is ‘turn toward’ rather than ‘arrive at’ a new normal. We specifically chose that turning description because there are a number of things that are making substantive changes of direction, and I believe that those will have a significant impact on how the year unfolds,” he said.
For example, the economy can expect less support from federal stimulus packages passed during the pandemic. “We’re likely to see much less in the area of fiscal policy stimulus for the economy going forward,” he said.
Duncan said about 90 percent of the questions he is asked as Fannie Mae’s chief economist focus on three themes: What’s the story on inflation? What’s the story on interest rates? What’s the story on house prices?
He shared his answers to those questions and offered his thoughts on supply chain challenges, housing inventory, mortgage rates, the Federal Reserve’s shift in monetary policy and the refi market.
Listen to the 30-minute webinar for free, thanks to SoftPro’s sponsorship, here.