A recent report published by Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) shows that the U.S. economy is on a recovery pathway this quarter after it experienced softer activity in the first quarter. The housing entity’s Economic & Strategic Research Group drew out conclusions that the overall economic activity in the country is progressing.
Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) did mention that the strong U.S. dollar accompanied with challenges in the oil and gas industry will continue to stall the economic progress in the short term. With the employment and household income picking up alongside a more stable weather, the economic growth has accelerated to 2.4% on an annualized basis in the second quarter, as per the report.
The company’s Chief Economist Doug Duncan commented that the economic activity during the first quarter for far more subdued than anticipated. He mentioned that the real consumer spending inched up by merely 1.8% on an annualized basis despite savings at the gas pump. The drop in economic activity during the first quarter led the housing firm’s research group to revise the growth forecast downward to 1.9% from 2.3%. However, the recent surge in the economic activity has given adequate reasons to the research group to up its forecast for the rest of the year.
Housing forecast unchanged
Duncan said that the improving labor market conditions indicate at the sustainability of income growth among consumers, while the auto sales have recorded an impressive month in May, evidencing the rise in consumer spending. In view of which, Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) has not changed its forecast for housing and mortgage activity.
The company maintained that the total housing starts and sales in the year 2015 will increase by 10% and 5% respectively. The stock price of Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) fell by nearly 4% to $2.39 during the previous trading session as 3.32 million shares changed hands.