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Housing Sector Key to Growth

According to Fannie Mae’s Economic and Strategic Research Group the trend of gradual but below-potential economic growth seen in 2012 is expected to carry over through 2013 and into 2014. The overall growth rate forecasted for 2013 is 2% similar to the

According to Fannie Mae’s Economic and Strategic Research Group the trend of gradual but below-potential economic growth seen in 2012 is expected to carry over through 2013 and into 2014. The overall growth rate forecasted for 2013 is 2% similar to the rate in 2012.  This is a continuation of the recovery’s modest growth since 2009. This is despite the fact that the housing sector, which has become a bright spot in the economy since home prices began to rebound in 2012, is expected to provide a rising contribution to GDP in 2013 and in coming years.

Recent data indicate that the housing recovery has transitioned to a faster upward track, boosted by an improving labor market and low mortgage rates. Overall, home sales, home prices, and home building activity as well as home builder confidence appear to be on the upswing, having risen to multi-year highs.

FNMA’s Chief Economist said, “In the longer term, the gradual return of manufacturing to the U.S. and increasing domestic energy production will work together to accelerate economic growth. However, we anticipate overall growth in 2013 will remain below its potential, extending what has been a slow recovery.”

Souce: Fannie Mae

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