Freddie Mac’s most recent monthly outlook says that the limited supply of houses has created a highly competitive housing market which keeping the share of cash sales significantly higher than its historical norm and affecting mortgage originations.
Key takeaways:
- Housing starts were lower than anticipated during the second quarter of this year
- Cash sales in June accounted for around 18% of all home sales, which is well above the historical average of 10%
- If cash sales remain near 20%, that could translate to $172 billion less in mortgage originations than would occur if the cash share was at its historical norm.
Click here to read the full report.
