Fannie Mae kicked off the year with a moderate but optimistic outlook on origination numbers for 2018. However, it looks like the company is now editing its original forecast due to "tepid home sales," according to a recent report.
"The government-sponsored enterprise lowered its 2018 origination forecast for the third time this year, primarily due to fewer existing home sales and purchase mortgages," according to National Mortgage News.
"Fannie's projection for 2018 refinance volume did not change from the June edition of its report."
The company moved its calculations from $1.71 trillion in originations for 2018 to $1.69 trillion. Both totals have dropped significantly from 2017's $1.83 trillion in origination volume.
"Along with ongoing tightening of monetary policy, we expect fiscal stimulus, which has supported consumer, business and government spending, to weaken as we move into 2019," Fannie Mae Chief Economist Doug Duncan said in a statement, according to NMN.
"And while trade provided a meaningful lift last quarter — owing in part to overseas firms pulling forward their imports from the U.S. ahead of the announced tariffs — we expect trade will likely once again be a drag on growth moving forward."
To learn more about Fannie Mae's altered origination outlook for 2018 and 2019, click on the image above.