Housing sector to contribute to GDP: Fannie Mae

New York /
Feb.February 21, 2012 03:00 PM

The housing sector will contribute to gross domestic product for the first time in seven years, according to a report released today by Fannie Mae’s economic and strategic research group.

The economy grew 2.8 percent in the fourth quarter of 2011 and is expected to grow at an overall rate of 2.3 percent this year, up from 1.6 percent for 2011 as a whole, the report says.

The report, which predicts economic growth for the coming year, said gains in the housing sector would be modest, and that a further decline in median sale prices for homes is still expected. However, the labor market continued to improve, with non-farm payroll jobs increasing by nearly 250,000 in January across many industries, including construction.

“The economy appears to be more resilient than in previous months, and should be less vulnerable to shocks, including any spillover from the European sovereign debt crisis,” said Doug Duncan, Fannie Mae’s chief economist. “Economic growth will remain constrained by various headwinds, such as a potential spike in oil prices due to tension in the Middle East.” — Guelda Voien


Related Articles

arrow_forward_ios
From left: Fannie Mae's Hugh Frater and Freddie Mac's Michael DeVito
Government to back home loans over $1M
Government to back home loans over $1M
Residential Real Estate, Housing Market, Fannie Mae
Sentiment sinks deeper as market sidelines buyers and sellers
Sentiment sinks deeper as market sidelines buyers and sellers
Equifax CEO Mark Begor (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images)
Equifax error might have harmed (or helped) mortgage applicants
Equifax error might have harmed (or helped) mortgage applicants
Fannie Mae's Doug Duncan (Fannie Mae, iStock)
Optimism continues slide among would-be homebuyers
Optimism continues slide among would-be homebuyers
A photo illustration of a crystal ball predicting future home prices (iStock)
Home sales, building to slow: Fannie Mae
Home sales, building to slow: Fannie Mae
Fannie, Freddie to buy mortgages up to nearly $1M
Fannie, Freddie to buy mortgages up to nearly $1M
Fannie, Freddie to buy mortgages up to nearly $1M
FHFA director Sandra Thompson (FHFA, iStock)
Treasury suspends investment property restrictions to boost housing supply
Treasury suspends investment property restrictions to boost housing supply
From left: JPMorganChase CEO Jamie Dimon, Goldman Sachs CEO David Solomon and Morgan Stanley CEO James Gorman (Getty)
Demand for private-label mortgages on the rise
Demand for private-label mortgages on the rise
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...