Fannie turns a bit cautious on housing

|By:, SA News Editor

"The loss of momentum is likely a temporary one," says Fannie Mae chief economist Doug Duncan, nevertheless downgrading the company's outlook for housing due to a "lackluster" sales environment. His team now expects housing starts to rise to about 1.05M units this year from 925K in 2013. That's about 50K less than Fannie expected at the start of the year.

As for sales, those for existing homes may have remained flat, but Fannie continues to believe new home sales will increase at a double-digit pace.

Homebuilder ETFs: ITB, XHB