Talk of a looming recession continues, and the latest warning says it could hit as early as this year.
in one press release On Friday, government-backed mortgage agency Fannie Mae warned that a “modest resignation” was “expected” in the second half of 2023, according to the agency’s Economic and Strategic Research Group.
Fannie Mae pointed out that unsustainably high consumer spending and a slowing housing market are the likely culprits that could herald a looming recession.
As home sales have slowed over the past year, the agency is forecasting continued declines throughout the year due to tight inventories and a lack of affordability.
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Although the current real estate market is one of the main indicators of an imminent recession, the sector has proven relatively resilient and could also be the driving force behind the country’s economy exit from a recession.
“Housing continues to be evidence of why we expect the recession to be moderate,” Doug Duncan, Fannie Mae’s senior vice president and chief economist, said in the release. “It continues to exceed our expectations and we expect its relative strength to help return the economy to growth in 2024.”
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