Welcome!




Expand Your Education with These Courses from
Time Management: Skills for Sales Success: Part Two.
Customer Relationship Building: Skills for Sales Success: Part Seven.
Bundle 1: CIPS Core Course (US Version).
Bundle 1: CIPS Core Courses (Non-US Version).
Bundle 2: CIPS Elective Courses (Non-US Version).

Economy Picks Up Steam; Housing Recovery, Consumer Spending, and Manufacturing Pave the Way

Have a comment on this article? Share on Facebook!

By Pete Bakel

economic_improvementEconomic growth continues to gain momentum in the second half of the year, as expected, despite the slow start at the beginning of 2013. Fannie Mae’s Economic & Strategic Research Group’s full-year forecast for both the economy and housing market remains on track, with GDP expected to come in at approximately 2.0 percent in 2013 and to accelerate to 2.6 percent in 2014. Fiscal drag is waning, the housing recovery continues, and manufacturing and business investment are rebounding, helping to boost growth.

Furthermore, consumer spending and the employment sector appear to be growing sustainably, which may help to offset downside risks from the expected tapering of the Federal Reserve’s securities purchases.

“Our macroeconomic and housing forecast shows very little change from July, and the steady pickup during the past few months validates our expectations for the second half of the year,” says Fannie Mae Chief Economist Doug Duncan. “The biggest risk to this forecast is the expected reduction in the Federal Reserve’s asset purchases, which would likely put additional upward pressure on interest rates and lead to some volatility in capital markets. Although the nature and timing of the tapering are still to be determined, we continue to expect the Fed will scale back its asset purchases and end the program by spring. In addition, we may see some fiscal tightening this fall as the debate over federal spending and the debt ceiling takes place.”

The housing recovery appears to have weathered some of the uncertainty, although additional growth is expected to be modest rather than robust while the market awaits an easing of credit conditions in the presence of rising interest rates. The rise in mortgage rates has led to a drop-off in refinance activity but does not appear to have had much impact on home purchase activity to this point. Home prices are expected to continue to climb, although the pace should slow significantly from the dramatic levels seen during the past 12 months.

For more information, visit www.fanniemae.com.

Want instant access to great articles like this for your blog or newsletter? Check out our 30-day FREE trial of REsource Licensed Real Estate Content Solutions. Need easy stay-in-touch e-Marketing solutions too? Try Pop-a-Note for 99 cents!
Join RISMedia on Twitter and Facebook to connect with us and share your thoughts on this and other topics.




Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Copyright© 2014 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Content on this website is copyrighted and may not be redistributed without express written permission from RISMedia. Access to RISMedia archives and thousands of articles like this, as well as consumer real estate videos, are available through RISMedia's REsource Licensed Content Solutions. Offering the industry’s most comprehensive and affordable content packages. Click here to learn more! http://resource.rismedia.com

Our Latest News >>