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  • Mid-course correction. (Mortgage Bankers Association economic predictions): An article from: Mortgage Banking


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    Mortgage rate predictions are notoriously tricky and not very reliable, because they are based on historic data and that cannot account for the current happenings in world affairs. I don't know of anyone predicting it on a day to day basis. Even if there


    Mortgage rate predictions are notoriously tricky and not very reliable, because they are based on historic data and that cannot account for the current happenings in world affairs. I don't know of anyone predicting it on a day to day basis. Even if there

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    Fannie Mae Makes Prediction and Says Growth Expectations Modest at Start of Year

    23.02.12

    (Source: Fannie Mae) – The 2012 outlook is improving modestly from a disappointing 2011. Economic growth picked up in the fourth quarter of 2011 to 2.8 percent and is expected to come in at 2.3 percent for 2012, up from 1.6 percent growth for all of last year, according to Fannie Mae’s (OTC Bulletin Board: FNMA) Economic & Strategic Research Group. However, the year-end growth rate was due largely to a positive swing in business inventory growth, which is not indicative of underlying consumer demand or the overall health of the economy. Nevertheless, consumer spending improved modestly and manufacturing and services activity expanded at a strong pace. Importantly, labor market conditions continued to improve with nonfarm payroll job growth increasing nearly 250,000 across many industries, including construction. The unemployment rate dropped to 8.3 percent, down from 8.5 percent the month prior, as the large increase in employment outweighed a growing number of people joining the work force — indicating a genuine improvement in the labor market. If we continue to see this level of positive data, the Group notes, the labor market may become an upside determinant for an improved outlook.


    Source: LoanSafe

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