By Jann Swanson | Mortgage News Daily
The prognosticators are already gearing up for the New Year and at least one foresees a strong economy in 2015. Freddie Mac’s chief economist Frank E. Nothaft is forecasting 3.0 percent growth in the economy, which would make 2015 only the second year in the last decade with growth at that pace or better.
His forecast, published in Freddie Mac’s Executive Perspectives blog, is based on several factors; the governmental fiscal drag has turned into fiscal stimulus, lower energy costs will support both consumer spending and business investment, further easing of credit for business and real estate lending will support commerce and development, and more upbeat consumer and business confidence will stimulate growth. That growth, he says, will produce more and better paying jobs which will in turn support household formation and housing activity.
