Mortgage Industry News
« Return to Mortgage Industry News
Fannie Mae Predicts Short But Excruciating Downturn
Friday, April 17, 2020
Fannie Mae's April Economic Developments summary is, like Freddie Mac's,
relatively optimistic only because they see the impact of the pandemic as being
very short lived. However, in the interim, some of the numbers they forecast
are hard to hear. In March, as the COVID-19 crisis loomed, Fannie's Economic and Strategic Research
Group reduced outlook for economic growth over the entire year from 2.2 to 1.8
percent. They now expect it to contract by 3.1 percent. Much of the negative
impact from the pandemic is expected in the current quarter and it will be a
lulu, a reduction of 25.3 percent on top of a projected loss of 3.3 percent in
Quarter 1. Based on an end to the social distancing orders in late May and a
gradual resumption of business activity in June, there will be above average
growth in the remaining two quarters, 7.6 percent and 13.6 percent
respectively. Growth for 2021 is projected at 4.8 percent.
Read Full Article