By Kristena Hansen | Phoenix Business Journal
It was only a few years ago that the housing market helped drag the U.S. economy into the gutter, but times surely have changed.
In its monthly economic forecast on Monday, Fannie Mae said it believes the recent slowdown in economic growth may be short-lived thanks to the strong rebound of the housing market, which will serve as the economy’s “tailwind” through the rest of the year and even into 2014.
“If (home purchase) demand awakens further and more jobs are added each month, economic activity should step up compared to 2012 levels with housing acting as a significant contributor to growth,” the report said.
After a strong start to 2013, Fannie Mae noted economic growth has been tapering off in recent months “partly due to fiscal drags including sequester.” But with further anticipated improvements in the financial and housing markets, Fannie Mae expects the nation’s economy will grow 2.2 percent by year-end from 2012. That’s a modest gain, but still better than the 1.7 percent and 2 percent year-over-year economic growth the U.S. saw in 2012 and 2011, respectively.
Continued: http://www.bizjournals.com/phoenix/news/2013/05/21/housing-market-now-the-tailwind.html
