This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Uneven Economic Growth Clouds Picture Of Modest Recovery Trend

WASHINGTON, Sept. 17, 2013 /PRNewswire/ -- Driven by better net exports and stronger inventory build-up than originally reported, revised economic growth in the second quarter surprised on the upside at a 2.5 percent annualized rate, a sizable upgrade from the previously released sub-2 percent pace. According to Fannie Mae's (OTC Bulletin Board: FNMA) Economic & Strategic Research Group, the upward revision for last quarter has neutralized the previously anticipated strengthening in the current quarter, which also faces potential downside risks from monetary and fiscal policy concerns, rising oil prices, and further mortgage rate increases. However, growth is expected to pick up again in the fourth quarter as fiscal drag fades and household wealth continues to rise. Despite the choppy quarterly pattern, the Group's full-year growth forecast of 2 percent remains unchanged from the beginning of the year.

"Incoming data for the current quarter paint a mixed picture, but overall we expect economic growth to slow from the surprising pace seen last quarter," said Fannie Mae Chief Economist Doug Duncan. "On the bright side, consumer spending appears to be improving from the tepid pace seen at the beginning of this quarter. Although Americans may continue to exercise caution, real consumer spending growth should improve modestly to slightly over 2 percent in the current quarter."

"With regard to housing, all eyes now are turned toward the Federal Reserve, which is expected to begin scaling back its asset purchase program this week," said Duncan. "Mortgage rates have increased more than 100 basis points since early May, and we anticipate that trend to continue, albeit gradually, during the next year. Despite the rise in mortgage rates, we expect the housing recovery to continue, with the mortgage market shifting away from refinance activity and more toward purchase activity. We project that purchase mortgage originations will account for more than half of total originations starting in the fourth quarter of 2013."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs