Mortgage giants Fannie Mae and Freddie Mac have lowered their forecasts for home sales this year, citing low inventory and the affordability crunch that shortage of homes has spurred. After relatively weak home sales in the first two months of the year, Freddie and Fannie now predict there will be 5.5 million sales in 2014, flat from last year. In a statement, Frank Nothaft, Freddie Mac's vice president and chief economist, said the spring homebuying season had started with "mixed signals." "Tight inventory may pose a significant challenge for homebuyers in many markets across the country, which may result in higher home prices and sales being lower than expected," he said. "This is good news for those markets that have room to run on the house price appreciation front, but it...
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