The economic growth we’ve seen this year shows a slow but upward recovery in housing, exceeding the expectations of economists
Economic growth is expected to gradually increase in the second half of 2013 and into 2014, according to the latest study from Fannie Mae’s Economic & Strategic Research Group.
Economists say that we are expected to see a slow but upward recovery in housing, rising household wealth and expanded energy production.
Fannie Mae, Economists Optimistic on Housing
The economic growth has exceeded the expectations of economists, and they are pleased to see such positive results this year. Doug Duncan, the chief economist at Fannie Mae, said his projections are for growth to exceed 2012.
- Fannie’s projections, Duncan said, show economic growth in 2013 increasing to approximately 2.1 percent.
- That would be up from the 1.7 percent rate of 2012, which Duncan labelled as “anemic.”
- With the housing market picking up steam, though, Duncan anticipates growth to continue increasing in the coming years, with an anticipated 2.5 percent growth in 2014.
- Even those numbers, though, are still below the economy’s potential, Duncan said.
“At the outset of the year, we forecasted that 2013 would witness sustainable but below-par growth as the economy begins its transition to more normal levels,” Fannie Mae Chief Economist, Doug Duncan, said. “Halfway through the year, our view is little changed.”
This year’s economic growth specifically affected housing, which has been very positive entering the spring/summer season. Various indicators such as home prices, home sales and homebuilding activity are showing signs of long-term improvement toward normal levels. And despite rising mortgage rates during the past month, which have affected refinance originations, affordability conditions remain high and should not present a significant obstacle to potential homebuyers.