Fannie Mae said today in its July Economic and Strategic Report that the view expressed in these reports since the first of this year has not changed; growth will pick up in the second half of 2013. Consumer fundamentaks - steady job creation, recovery highs in consumer confidence - are supporting an improving picture of economic activity. That said, Doug Duncan, Orawin T. Velz, and Brian Hughes-Cromwick of Fannie Mae's Economic and Strategic Research area report, "Disappointing growth during the first quarter was followed by anticipated weakening economic activity in the second quarter."
The economy will face challenges from rising long-term interest rates because of expections for future Federal Reserve monetary actions, but the economists still expect the improving fundamentals, ongoing housing recovery, and receding fiscal drags should help boost growth and inflation adjusted GDP should average about 2.5 percent for the rest of the year and 2.0 percent for the entire year.
Read more...Fannie Mae Expects Rates to Continue Higher via Mortgage News Daily
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