The economy has many parts. And, naturally, the housing market plays a role. When its strong, it can add to economic growth. When it isn’t, it can drag the economy down. According to the latest forecast from Fannie Mae’s Economic and Strategic Research Group, it’s currently strong and adding to growth for the first time in a year and a half. Doug Duncan, Fannie Mae’s senior vice president and chief economist, says buyer demand is responsible and, if not for inventory issues, the market might even be stronger. “As we forecasted, housing supported the larger economy in the third quarter, and we expect it to continue to play a productive role through the first half of 2020,” Duncan said. “Of course, the housing market as a whole remains constrained by the persistent supply and affordability issues, which is particularly unfortunate given the current strength of consumer demand for reasonably priced homes.” Ultimately, how much the housing market contributes to economic growth next year will be determined by how well the number of homes for sale can keep up with demand from buyers. More here.
