WASHINGTON, DC — At CMD Group’s fourth annual North American Construction Forecast held here at the National Press Club, Robert Barr, a senior economist with Fannie Mae, Washington, DC, told attendees that following record levels in home sales in 1999, housing activity will slow somewhat in 2000.
Residential construction is expected to dip in 2000 as the economy slows and refinance numbers go down, but will rebound in 2001, Barr said.
“Higher rates have really choked off the refinance market,” he added. Long-term interest rates have risen, topping 6% on the 10-Year Treasury. Thirty-year fixed-rate mortgages have gone up as well. A slower economy should allow the rates to fall.”