In this Real Estate News Brief for the week ending April 3rd, 2021... an economic update from Fannie Mae, a surge in consumer optimism, and the return of the cicadas.
We begin with economic news from this past week, and an updated economic forecast by Fannie Mae. The mortgage guarantee enterprise is expecting real GDP growth to hit 8.4% in the second quarter of this year, and 6.6% for the full year. It is anticipating the GDP to settle down a bit in 2022. Currently, risks to the economic recovery are viewed as neutral. That includes the future path of COVID-19 and its variants, the easing of social restrictions, and whether consumers will start spending more money from their personal savings. The housing market is expected to remain resilient with purchases hitting $1.82 trillion this year. That’s up from $1.61 trillion last year. Rising interest rates are not expected to have much of an impact. Fannie Mae’s chief economist Doug Duncan says: “While we forecast some continued upward movement, mortgage rates remain historically low, as they are still .8 percentage points below the 2019 average.”