The housing market is poised for its “most significant contraction” since 2006 as declining purchase activity makes “some relief” in prices possible, according to top economists from government-backed mortgage company Freddie Mac.
Sharing data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey, Freddie Mac Deputy Chief Economist Len Kiefer observed that mortgage applications had declined 40% from their seasonally adjusted peak. “The U.S. housing market is at the beginning stages of the most significant contraction in activity since 2006,” he argued. “Mortgage applications are pointing to a large decline over summer.”
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