Springfield Area Blog

Thanks to strengthening in consumer spending and growing policy clarity at the end of 2010, the economy is finally poised to accelerate and sustain above-par, less volatile growth, according to the January 2011 Economic Outlook released today by Fannie Mae’s (FNMA/OTC) Economics & Mortgage Market Analysis Group. The economy is expected to grow by 3.6 percent in 2011, compared to an estimated 2.8 percent in 2010. The group expects some increase in housing activity during 2011, however, a growth-oriented view of housing is not expected until 2012.

“The economy has regained momentum entering 2011 and we see significant improvement in the economy’s ability to grow compared to 2010,” said Fannie Mae Chief Economist Doug Duncan. “We expect a small rise in home sales this year, but significant amounts of supply and shadow inventory of expected foreclosures will continue to hamper a robust housing picture for some time.”

For an audio synopsis of the January 2011 Economic Outlook, listen to the podcast on the Economics & Mortgage Market Analysis site at www.fanniemae.com. Visit the site to read the full January 2011 Economic Outlook, including the Economic Developments Commentary, Economic Forecast, and Housing Forecast.