Fannie Mae: Economic growth to rebound in remainder of year – How are your sales?

Source:  Housingwire.com
New home sales are the bright spot in housing
Economic growth is set for a rebound in the second half of 2016 and will make up for the lackluster growth at the beginning of the year, according to Fannie Mae’s September 2016 Economic and Housing Outlook.
Fannie Mae’s outlook predicts that economic growth will hit 2.6% in the second half of the year, up from 1% in the first half. Overall, the full-year forecast for 2016 remains at 1.8%, unchanged from last month.  
Consumer and government spending are expected to be the main drivers of growth for the remainder of 2016, but inventory investment and net exports are likely to drag on growth. Nonresidential and residential investment are expected to be neutral for the year.
new-home-under-construction
“Consumers continue to carry the economy and the earnings slowdown in the August jobs report may be an aberration in the recently improving personal income growth trend,” said Fannie Mae Chief Economist Doug Duncan. Household income posted its first significant increase in eight years, new data from the U.S. Census Bureau showed. [read article]
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