Fannie Mae: Housing’s Weak Outset to Reverse
Economic growth was mostly stagnant in the first quarter, due to harsh winter weather in many parts of the country, Fannie Mae economists note in a new report. But economic activity is expected to shift course in the second quarter with growth strengthening for the remainder of the year.
An upbeat labor market and consumer spending outlook are poised to fuel economic growth, which in turn should take the housing market upward with it, according to Fannie Mae’s Economic & Strategic Research Group.
“We continue to expect the economy to drag housing upward as we move into the second quarter,” says Doug Duncan, Fannie Mae’s chief economist. “The economy is getting a boost from the strong employment numbers we’ve seen last year and at the start of 2015. When this employment growth partners with income growth and consumers experience a rise in their personal household income, we should see a similar boost in the housing sector. Overall, we expect an improving 2015 with continued economic growth bringing housing above 2014 levels.”
Source: Fannie Mae