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Economic headwinds will be offset in the coming year by a tightening labor market and a renewed decline in gasoline prices, according to Fannie Mae's Economic & Strategic Research Group-a heartening forecast that could bode well for the housing market. The ESR Group expects the economy to grow 2.4 percent in 2016.
"After a year of modest improvement, we continue to believe economic growth will close out 2015 at 2.2 percent before gaining momentum early in 2016," says Fannie Mae Chief Economist Doug Duncan. "Although consumers have been more cautious in recent months, preferring to save rather than spend, we believe they will pick up their spending pace next year amid solid job gains and resulting growth in incomes. The unsustainable third-quarter inventory investment will likely subtract signi...
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