Fannie Mae Notes Hopeful Construction Outlook


Posted To: MND NewsWire

Fannie Mae’s March economic forecast was written before the FOMC announced an increase in the fed funds rate last Wednesday. The company’s economists assumed there would be an increase, but hedged some of their predictions by noting both upside and downside risks to their 2 percent growth forecast. Currently the country appears on track to start the year with first quarter growth decelerating from the previous quarter for the fourth consecutive year. In February, Fannie Mae predicted the downturn would be minimal, with growth remaining around 1.9 percent annualized. New data indicates that forecast was too optimistic and they have revised their first quarter estimate to 1.6 percent. The main culprit was consumer spending, which fell 0.3 percent, the biggest drop in three years. The strong February…(read more)

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