Posted To: MND NewsWire

Fannie Mae made a few modest changes to its economic projections this month as consumer spending in January was above expectations and interest rates rose. The company’s Economic and Strategic Research (ESR) Group expects the growth in GDP in 2021 to be 6.6 percent rather than its prior 6.7 percent forecast and upgrades 2022 to 3.0 percent from 2.8 percent. Compared to last month’s forecast, they also expect a modestly stronger consumer recovery , but a more drawn-out expansion of government expenditures and a modestly slower pace of private investment spending. A downside risk to the forecast is the possibility of a more resistant virus variant emerging, leaving the future path of the virus a near-term risk. The greatest uncertainty, however, is how fast social distancing restricted activities…(read more)

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Source: Mortgage News Daily