Thursday, September 21, 2023 / by Richard Eimers
With a nod to the economy having “mixed signals,” Fannie Mae’s 3Q forecast calls for a “modest contraction” and mortgage rates “settling above 7%.”
WASHINGTON – The key question for economists: Is the U.S. headed toward a soft landing or a mild recession?
According to September 2023 commentary from the Fannie Mae Economic and Strategic Research (ESR) Group, it’s a modest contraction.
“Mixed signals from key economic data releases continue to muddle the near-term outlook and the answer to that question, but a modest contraction remains the most likely outcome as consumption continues to outpace incomes and previous monetary policy tightening works its way through the system,” the report says.
The housing market faces renewed headwinds with mortgage rates settling above 7%, according to the ESR Group. Still, the downside risk to total home sales is limited as more sales are being driven by life events rather than d ...
Monday, September 4, 2023 / by Richard Eimers
If you're following the news, you might be wondering how the housing market could be impacted by a recession. Understanding historical data and trends can provide valuable insights into what might happen in such situations.
A recession is a significant and prolonged economic decline, typically characterized by two consecutive quarters of negative gross domestic product (GDP) growth. It's important to note that recessions don't usually occur out of nowhere; they can often be predicted by tracking various economic indicators such as payrolls, industrial production, and retail sales, among others. The National Bureau of Economic Research plays a crucial role in identifying and defining recessions.
During a recession, the economy experiences several challenges. One of the most noticeable impacts is a rise in unemployment rates, leading to a decrease in people's disposable income. This reduction in income causes individuals to curtail their spending, which, in turn, affects businesses ...