Fannie: GDP On Track for 2.7% Rise

Doug Duncan, chief economist with Fannie Mae

WASHINGTON, DC—The US economy remains on track for 2.7% real GDP growth this year despite rising long-term interest rates and the stock market’s recent turbulence, Fannie Mae said Thursday. The GSE’s latest Economic and Housing Outlook also predicts a 3.3% year-over-year increase in sales of new and existing homes, including for-sale apartments, although the annual increase is expected to moderate to 1.9% in 2019.

Fannie emphasizes the importance of the Federal Reserve’s actions in determining the economy’s actual performance in the coming months. “While our 2018 growth forecast remains unchanged, upside and downside risks are emerging that are contingent on those policy influences,” says Doug Duncan, chief economist with Fannie.