Housing sector set to boost slowing economy, Fannie Mae says

Fannie Mae says housing will buoy the recent economic slowdown.A new report indicates?the housing sector will ultimately serve as the economy's saving grace when it comes to the recent easing of the country's financial system.According to Fannie Mae's?Strategic Research Group, economic activity in the first part of the year was robust, led by strong consumer demand and spending. More recently, though, activity has slowed, largely as a result of the sequestration that lawmakers put into effect, which implemented mandatory spending?cutbacks in an effort to reduce the country's debt levels.But as the second half of the year approaches, a renewed acceleration of the market is anticipated, thanks in large part to home buying demand and steadily improving unemployment rate.”Employment numbers are getting better, albeit it at a relatively slow pace, and the April employment picture should help boost consumer sentiment toward the economy overall,” said Doug Duncan, chief economist for Fannie Mae.He added that home purchase demand is expected to pick up as the year progresses and will likely continue into 2014, which should act as a significant contributor to overall economic growth.Robust demand for Houston homes may help explain why the Lone Star State has performed well in the economic realm. According to recent statistics from the U.S. Census Bureau, based on real gross domestic product growth Texas has several of the country's fastest-growing metropolitan areas, with real GDP levels in Housing reaching nearly 4 percent in 2011.
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