Much of the economic activity expected at the beginning of 2015 should shift into the second quarter, with growth strengthening in coming quarters, reports Fannie Mae’s Economic & Strategic Research (ESR) Group. Despite downside risks, upbeat labor market conditions and positive consumer and business fundamentals should push growth to 2.8 percent this year.
"We continue to expect the economy to drag housing upward as we move into the second quarter,” says Doug Duncan, Fannie Mae chief economist. “The economy is getting a boost from the strong employment numbers we’ve seen last year and at the start of 2015. When this employment growth partners with income growth and consumers experience a rise in their personal household income, we should see a similar boost in the housing sector.
“Overall, we expect an improving 2015 with continued economic growth bringing housing above 2014 levels,” adds Duncan.
Source: Fannie Mae
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