Fannie: The Economy Underperforms
Economic growth was weaker than expected in the second quarter and that's prompted a less optimistic outlook for the remainder of the year, according to Fannie Mae's Economic & Strategic Research Group.
Continued headwinds from a strong dollar and renewed drops in crude oil prices are expected to continue to pose economic challenges in the latest quarter, Fannie Mae economists note. But the housing market is expected to contribute to more growth this year in the economy. The main housing indicators are all well-above year-ago levels year-over-year.
"While consumer spending growth picked up as we expected in the second quarter of this year, other components disappointed," says Doug Duncan, Fannie Mae chief…