GSE said it now expects a 3.9% increase in home prices this year
Fannie Mae netted $5 billion in profits in the second quarter, up $1.22 billion from the first three months of the year.
Executives attributed the swollen profits to the continued strength of home prices, which have risen 5% in the first six months of the year.
In fact, Fannie Mae is no longer predicting a decline in home prices in 2023. The government sponsored enterprise‘s forecast now calls for a 3.9% home-price increase this year, though a recession is still in the cards.
“The economy has remained more resilient than we expected earlier in the year, but we believe it is still on a decelerating path and additional drags are likely forthcoming,” Chryssa Halley, Fannie’s chief financial officer, said on the second-quarter earnings call on Tuesday. “While noting the probability of a soft landing may have increased of late, our economic and strategic research group expects the economy will enter a modest recession in the fourth quarter of this year or the first quarter of next year.”
Here are some highlights from Fannie Mae’s second quarter:
Fellow GSE Freddie Mac will disclose its second quarter earnings on Wednesday.
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