Fannie Sees Slow Growth Through End of Decade via Mortgage News Daily

Fannie Mae's Economic Outlook series continued its 2013 theme "Transition to 'Normal?'" in its June edition saying that four years into an expansion it appears the country may be well into a prolonged period of sub-par but sustainable growth. Fannie Mae's economists say that they expect the annual growth rate between now and the end of the decade will average between 2.25 and 2.50 percent where the consensus of what would constitute normal will likely be around 2.75 percent. Thus growth will probably be a bit slower than the potential of the economy and if that proves incorrect it will likely be housing and energy development that drive it higher.

The economists, Doug Duncan, Orawin T. Velz, and Brian Hughes-Cromwick, say their intermediate term view has changed little since the beginning of the year; modest growth for this year before accelerating moderately next year, and a durable recovery for housing with homebuilding and construction employment returning to normal around 1916.

Read more...Fannie Sees Slow Growth Through End of Decade via Mortgage News Daily:

'via Blog this'