Tag Archive for fannie mae

Housing Recovery To Boost Economic Growth

January 27, 2014 Housing Market Comments Off on Housing Recovery To Boost Economic Growth

Economic growth is expected to gain momentum in the new year, according to Fannie Mae’s Economic & Strategic Research Group. A rebound in consumer sentiment, an improving labor market, and the continued housing recovery are all expected to drive economic activity and boost consumer and business spending throughout the year. Doug Duncan, Fannie Mae’s chief economist, said the housing recovery’s contribution to GDP should double last year’s, due in large part to increased homebuilding activity and continued improvement in the market overall. According to Duncan, consumer attitudes about housing are strengthening, despite last year’s mortgage rate and home price increases. That, and the fact that many housing indicators posted strong gains at the end of 2013, bodes well for a continued but measured housing recovery this year. Less uncertainty surrounding the federal government’s fiscal and monetary policy is also expected to lead to improved private-sector activity and economic gains. Overall, Duncan feels the economy is on a sustainable path for continued growth in 2014. More here.

Americans Increasingly Positive About Housing

January 7, 2014 Housing Market Comments Off on Americans Increasingly Positive About Housing

The number of Americans who have a positive perception of the current housing market has improved significantly from a year earlier, according to Fannie Mae’s December National Housing Survey. The year-over-year gains reflect an increasingly strong recovery, despite a dip in sentiment during the fall. For example, the percentage of respondents who feel it’s a good time to sell a house rose from 21 percent to 33 percent over the last year. The percentage of participants who said they felt it would be easy to obtain a home mortgage also increased over the past 12 months, from 45 percent last year to 50 percent in the most recent survey. Doug Duncan, senior vice president and chief economist at Fannie Mae, said consumer attitudes about the ease of getting a mortgage today are at their highest level in the survey’s three-and-a-half-year history. According to Duncan, that improvement should help offset the effects of higher mortgage rates and support a continued but measured housing recovery as we move through 2014. Also, the number of Americans who believe now is a good time to buy a home jumped to 67 percent and the percentage of respondents who feel their personal financial situation will get better in the next year was up four points to 42 percent. More here.

Market Momentum Carries Over Into New Year

December 30, 2013 Housing Market Comments Off on Market Momentum Carries Over Into New Year

Consumer confidence has rebounded since October’s government shutdown and should continue to strengthen in 2014 as fiscal and monetary policy issues begin to clear. According to Fannie Mae’s Economic & Strategic Research Group, the improvement should lead to gains in consumer spending, manufacturing activity, and economic growth – all of which will contribute to the housing market’s continued recovery. Doug Duncan, Fannie Mae’s chief economist, said housing will continue on a modest upward trend toward more normal levels in 2014, with additional home price increases tempered by declining investor activity in the market. Duncan said housing indicators met the group’s expectations for 2013 and should continue their gradual march toward normal in the new year. More here.

Americans Cautious But Still Want To Buy

December 10, 2013 Housing Market Comments Off on Americans Cautious But Still Want To Buy

Americans are feeling cautious about their money and the housing market as 2013 comes to an end. Surveyed for Fannie Mae’s November National Housing Survey, nearly two-thirds of Americans said they believe the economy is headed in the wrong direction and that their personal finances will worsen in the next year. Despite the pessimism, however, the housing market is still expected to improve. Doug Duncan, senior vice president and chief economist at Fannie Mae, said caution is the defining feature of Americans’ attitudes toward the economy. In this environment, according to Duncan, the housing market is likely to improve but only at a gradual pace. Still, a majority of Americans said they would buy, rather than rent, if they were to move and 64 percent feel that now is a good time to buy a home. The number of respondents who felt it would be easy for them to obtain a home mortgage rose 4 percentage points to 50 percent. More here.

Economy To Pick Up After Slow Winter

November 27, 2013 Housing Market Comments Off on Economy To Pick Up After Slow Winter

Americans’ view of the economy took a hit following the government shutdown and debt ceiling debate. And, because this winter will see additional budget and debt issues – in addition to the appointment of a new Federal Reserve chair in January – the most recent forecast from Fannie Mae’s economic & Strategic Research Group sees a few more months of suppressed consumer spending and economic growth. Still, the outlook calls for growth to pick up next year, as the labor market improves and the fiscal drag wanes. Doug Duncan, Fannie Mae’s chief economist, said the November economic and housing forecast reflects many of the themes from the previous month, especially the effect of government gridlock on consumer attitudes. Sentiment toward housing also weakened because of the shutdown, despite low single-family mortgage rates and continued year-over-year price gains. More here.

Gridlocked Government Grinds At Consumer Sentiment

November 15, 2013 Housing Market Comments Off on Gridlocked Government Grinds At Consumer Sentiment

Americans’ perception of the economy and housing market took a big blow during October’s government shutdown and debt ceiling debate. According to the results of Fannie Mae’s October 2013 National Housing Survey, sentiment suffered record losses from the previous month’s results. For example, the number of Americans who said it is a good time to buy a house experienced the largest one-month change in survey history, falling to 65 percent. The number of people who feel the economy is on the right track also set a survey record for monthly change as it dropped 12 percentage points from September. Doug Duncan, Fannie Mae’s senior vice president and chief economist, said the results suggest that consumer attitudes are highly responsive to ongoing debate and decision-making in Washington. Still, because the majority of respondents were polled during the shutdown, the data may reflect a temporary surge in economic pessimism. Over the long term, governmental gridlock is not expected to derail the housing market’s recovery. More here.

Fiscal Debates Have Minimal Effect On Housing

October 21, 2013 Housing Market Comments Off on Fiscal Debates Have Minimal Effect On Housing

The recent government shutdown, debate over the debt ceiling, and ongoing fiscal uncertainty threatens to slow an expected pickup in overall economic growth this quarter, according to Fannie Mae’s Economic & Strategic Research Group. As a result, the ESR group has downgraded their forecast for full-year growth. But despite the slight change in projected economic activity, the housing market is expected to continue to improve. Doug Duncan, Fannie Mae’s chief economist, said these fiscal policy issues appear to have had only a minimal effect on the housing market and, because prices rose rapidly over the past year, household net worth should be able to withstand any fallout. Duncan added that the continuation of the Fed’s securities purchases should keep mortgage rates down, helping more homeowners take advantage of refinance opportunities. More here.

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