Magazine article Mortgage Banking

Count Your (Mixed) Blessings

Magazine article Mortgage Banking

Count Your (Mixed) Blessings

Article excerpt

THE GOOD NEWS IS THE ECONOMY IS BOOMING. THE BAD NEWS IS THE ECONOMY IS booming. On the one hand, this thriving economy is expected to produce a fourth record year for housing sales--that's never happened before. On the other hand, there are so few unemployed that wage pressures worried the Fed enough to bump up rates three times last year. And more rate hikes are in store if this economy doesn't cool it. Which, in turn, puts housing industry economists in the strange position of rooting against this amazing economy.

Fannie Mae's chief economist had to revise his official forecast up the day before he presented it to the Washington press corps. Why? The growth in the economy appears relentless, even in the face of recent Fed hikes. David Berson told the press that ongoing momentum in the economy prompted him to bump up the forecast for 2000 real gross domestic product growth to 3 percent (fourth quarter to fourth quarter). It had been 2.7 percent. Berson expects one more tightening by the Fed early this year to try and slow things down.

Berson's forecast also now calls for just under $1 trillion in originations in 2000. But, he added, that still brings 2000 in as the fourth-highest origination year ever, with an estimated $993 billion. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.