Q1 2023 Research & Insights

Economy: The U.S. Economy Under Stress

  • Economic growth picked up in the second half of 2022; expected to slow down this year.
  • Labor market remains strong with unemployment rate equaling 50-year lows.
    • Prospect of a recession in 2023 rising.
  • Inflation still above the Fed target.

Housing Market: Affordability Challenged by Higher Rates – House Prices Resilient

  • Mortgage rates rose at fastest pace in 40 years, impacting affordability, purchase applications and home sales.
  • Housing supply increased, but only modestly; new listings decline due to the rate-lock in effect.
  • Home prices saw the fastest deceleration in over four decades, but the cumulative increase in the last four years remains high.

Distress Supply, Delinquencies & Foreclosures

  • Mortgage Delinquencies and Foreclosures ticking up slightly.

Download the Reports

Outlook Q1 2023 slide

Economic & Housing Market Outlook

Freddie Mac's Economic & Housing Market Outlook sheds light on impacts of inflation, mortgage rates, home prices, and delinquencies and foreclosure activity within the U.S. housing market.

May 2023 Outlook

Quarterly Forecast

Recent data suggest the glass is more than half full; a growing economy and relatively resilient first-time homebuyer demand, given the poor affordability.