Every month, Fannie Mae’s Economic and Strategic Research Group releases a commentary covering what the group sees ahead for the housing market and economy. Its forecast looks at factors like mortgage rates, home prices and economic growth, then estimates where they’re headed through the end of the year and into the next. In its September release, the group says mortgage rates have improved considerably but have yet to move home buyers, who may be holding out for even better conditions. “Although mortgage rates have fallen considerably in recent weeks, we’ve not seen evidence of a corresponding increase in loan application activity, nor has there been an improvement in consumer home buying sentiment,” Doug Duncan, Fannie Mae’s senior vice president and chief economist, says. “We think it’s likely that many would-be borrowers are waiting for affordability to improve even further, and that some may be anticipating additional declines in mortgage rates given expectations that the Fed will lower the federal funds target rate.” (source)