Fannie Mae releases monthly the results of Economic & Strategic Research Group which amends the outlook for the real estate housing market and overall economic growth. The most current estimate reveals evidence of stronger than expected economic activity during the 2nd quarter of this year and should raise consumer confidence and boost the housing market for the remainder of the year.
With this news, Fannie Mae's chief economist Doug Duncan believes we should see continued gains in the real estate market. Mr Duncan was quoted as saying, “We expect to see strong sales, lean inventories, and rising confidence through the rest of the year, which should support increased home building activity and give an added boost to economic growth.” He added, “Although a lack of skilled labor may hurt construction activity, our forecast calls for housing starts to average 1.12 million units. We expect existing and new home sales to climb by approximately five and twenty-five percent, respectively, and total mortgage originations to rise approximately 24 percent to $1.46 trillion, with a refinance share of 47 percent.”
Mr. Duncan attributes the positive outlook to bolstering consumer confidence, net worth for the average household, and prospects for income growth which typically accompany an improved job market.