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Strengthening Economy Expected to "Drag" Housing Along
Friday, January 23, 2015
Mae's economists expect the economy to strengthen in 2015 and that will "drag"
housing into a better cycle this year.
The company's forecast for the year includes a moderate acceleration of
economic growth, "driven by strengthening private domestic demand, especially consumer spending, amid continued low gasoline prices, firming
labor market conditions, rising household net
worth through both financial and
housing wealth, improving consumer and business confidence, and reduced fiscal headwinds." They project growth will
accelerate from their estimate of 2.6 percent in 2014 to 3.1 percent in
2015. This stronger climate "should
lead to improving income prospects, underpinning a higher rate of household
formation in 2015."
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