Economy Picking Up Steam According To Fannie Mae Report

DSC_0041Fannie Mae released their Economic and Strategic Research Group’s full year forecast and stated that economic growth continues to improve in the second half of the year.

According to Fannie Mae, both the economy and housing remain on track and the Gross Domestic Product (GDP) is expected to come in at approximately 2.0% in 2013 and 2.6% in 2014.

Fannie Mae Chief Economist Doug Duncan had this to say, “Our macroeconomic and housing forecast shows very little change from July, and the steady pickup during the past few months validates our expectations for the second half of the year.  The biggest risk to this forecast is the expected reduction in the Federal Reserve’s asset purchases, which would likely put additional upward pressure on interest rates and lead to some volatility in capital markets.  Although the nature and timing of the tapering are still to be determined we continue to expect  the Fed will scale back its asset purchases and end the program by spring.  In addition we may see some fiscal tightening this fall as the debate over federal spending and the debt ceiling takes place.”

The rise in mortgage rates has led to a drop off in refinance activity but so far hasn’t seemed to impact home purchase activity.

Fannie Mae predicts that home prices will continue to climb, although at a slower pace than the dramatic levels seen during the past 12 months.

The Naples real estate market is still very active and we are looking forward to a great season starting January 2014.  If you are interested in buying a home for future use, now is the time to purchase your home and use as a rental income property until you can retire and enjoy it.  Our prices have increased over the past year and inventory continues to decrease.  Call me now at 239-601-3174 so we can begin the search for your new home in Naples Florida before the prices and interest rates increase!

Remember, it is always toasty in Naples and you deserve your piece of Naples sunshine!

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