Mortgage giant Fannie Mae says that though recent indicators suggest economic growth will pick up in the second quarter of this year, the housing market still remains fragile.
Fannie Mae’s Economic & Strategic Research Group forecasts an increase in consumer spending and notes that an upbeat April jobs report showed an increase in hiring at the fastest pace in more than two years, suggesting the economic recovery is gaining momentum in the second quarter and will remain firm throughout the remainder of the year.
But “the housing picture remains more worrisome, with existing home sales, new home sales, housing starts, and multifamily housing all experiencing year-over-year declines despite improving consumer attitudes,” says Doug Duncan, Fannie Mae’s chief economist. “However, we anticipate a modest uptick in housing activity as the spring and summer selling and building seasons get under way. We believe this year will likely be a bump in the long-term road back toward normal levels, which we continue to expect sometime in late 2016.”
Source: Fannie Mae