As I reported in MGIC’s Market Trend Analysis Report, the US economy grew at a somewhat slower rate over the first 2 quarters of the year. Some of this was due to the weaker global economy, stock market corrections, potential fallout from the United Kingdom’s decision to leave the European Union and even uncertainties surrounding the upcoming US presidential election. Still, the fundamentals behind the economy appear to be encouraging and should result in stronger economic growth through the end of the year, according to most economists.
Based on year-to-date totals, the US is on track to add more than 2 million workers to the payroll this year.
Even though it did not lead the recovery, housing remains a key economic driver. The housing market continued to show improvement with solid gains forecast for 2016. The U.S. is on pace for total home sales to reach 6 million for the year, almost a 4% increase from the 2015 total. Nationally, home prices continue to appreciate in the 5% to 6% range, similar to the rate reported a year earlier. With the supply of both new and existing homes near 5 months, home prices are likely to rise further.
Based on the data and the forecasts we are reading, the overall economic outlook remains positive for the remainder of the year. For more specific market details, please see the full Market Trend Analysis Report.Tags: Economy, Employment, housing, Housing Market, Mortgage Industry