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Silver Lining Sales Forecast; Inventory Hurting; Highest Rates in a Month

Silver Lining Sales Forecast; Inventory Hurting; Highest Rates in a Month

Fannie Mae substantially revised its housing forecast this month, especially as regards new home construction. The company's Economic and Strategic Research (ESR) Group said it based its upward revision on "the breadth of positive economic signals," including the continued modest growth of the economy despite a variety of risks , ongoing strength in labor markets and the resulting stability of consumer spending. Then, this month there was fresh evidence that construction is poised to again be an engine of economic growth. Fannie Mae's December housing outlook is for homebuilders to expand production in reaction to continued strength in labor markets and consumer spending, supportive interest rates, and waning risks of a significant near-term economic slowdown. The ESR Group notes that there
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