Fannie Mae: Stronger housing market to push economy ahead

Fiscal constraints will keep U.S. economic growth around 2 percent for much of the year, but a recovering housing market, growing household wealth and expanded energy production will bring a boost, according to Fannie Mae’s latest forecast. Read the news release.

Housing was largely positive entering the spring/summer season, with various indicators such as home prices, home sales, and homebuilding activity showing signs of long-term improvement toward normal levels. 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, according to Fannie Mae.

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