Fannie Mae's Housing Forecast Seems Too Optimistic

In Fannie Mae's (FNM) earnings announcement on Friday, the company said it is forecasting a 2% drop in home prices in '07 and a four percent drop in '08. Something tells us that these forecasts are a little too optimistic.

The chart below shows the Case Shiller Home Price Index for 20 major US markets. Through August, the index is down 3% on the year. Does anyone actually think the real estate market actually improved over the last two months so that prices will go up from August's levels?

Comments

[Rich4REITs]

FNM has to bluff in order to keep some naive fund to save their ass...........

[jcee]

My home is on the market, so i am forced to agree with them until such time that it sells. SHH SHH SHH.

[Jay Jay]

Intersting

[Jay Jay]

test

[Anonymous 2]

Maybe the persons responsible for the filing of the FNM report were at the same golf club or at the same bridge tournament at which a few othres slipped away for a few minute smoke break - but without inhaling...