Accelerated Housing Activity In The Forecast

Economic growth slowed during the first quarter of the year because of harsh winter weather in the Northeast and Midwest and the port strike on the West Coast. But, according to Fannie Mae’s Economic and Strategic Research Group, growth is going to rebound and will continue to improve through the end of the year. Not only that, economic growth will be strong enough to help boost housing market activity as well. In fact, Doug Duncan, Fannie Mae’s chief economist, believes economic growth will carry real estate activity well above 2014 levels. “We continue to expect the economy to drag housing upward as we move into the second quarter,” Duncan said. “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.” Fannie Mae expects a broad-based recovery, with new-home construction rising 15 percent above last year’s levels and home sales up 6 percent. They also expect a 5 percent improvement in total single-family mortgage originations. More here.

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