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Freddie Sees Home Sales Regaining Momentum in 2019; Price Slump Doesn’t Mean This is 2008; Rates Edge Higher

Freddie Sees Home Sales Regaining Momentum in 2019; Price Slump Doesn’t Mean This is 2008; Rates Edge Higher

Freddie Mac is forecasting that there will be GDP growth of 3.0 percent in the second quarter of this year, moderating from the strong 4.2 percent growth in the first quarter. The company's October Forecast, prepared by its Economic and Housing Research Group, now extends its predictions into 2020 and they are looking at substantial economic slowing by then. The forecast for all of 2018 is growth of 3.0 percent, slowing to 2.4 percent next year and to only 1.8 percent in 2020 "as the effects of expansionary fiscal policy fade." Last year's hurricanes damaged both the economy and the housing sector, but at this point Hurricane Florence is expected to create only a small dip in economic growth and cause no appreciable increase in foreclosures. The labor market picture continues to be strong with
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