Fannie Mae Warns of Recession in ‘Second Half of the Year’


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.

Related Topics: Most businesses slow down during a recession – here’s how to keep up and grow your business in 2023

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.”

Related topics: “There is a fear that everything will collapse”: House prices are falling, but there is still a lack of offers

Source link


Please enter your comment!
Please enter your name here

Share post:




More like this

How to Change Careers: A Step-by-Step Guide

Changing careers...

RBI draws up plan to make non-bank e-payments safer

MUMBAI: Have you ever downloaded an app that...

Competition concerns in the age of AI

Henry Hauser is advice in Perkins Coieserves in...

The Best Paying Jobs In Consumer Services

Some professionals...