{"id":399890,"date":"2020-12-15T08:33:37","date_gmt":"2020-12-15T13:33:37","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=399890"},"modified":"2020-12-15T08:33:37","modified_gmt":"2020-12-15T13:33:37","slug":"economy-poised-for-considerably-stronger-2021-as-covid-19-vaccine-distribution-efforts-commence","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/economy-poised-for-considerably-stronger-2021-as-covid-19-vaccine-distribution-efforts-commence\/","title":{"rendered":"Economy Poised for Considerably Stronger 2021 as COVID-19 Vaccine Distribution Efforts Commence"},"content":{"rendered":"<div class=\"xn-newslines\">\n<h2 class=\"xn-hedline\">Housing&#8217;s Remarkable Recent Run Likely Not Sustainable, but Strong Sales Pace Still Expected<\/h2>\n<p class=\"xn-distributor\">PR Newswire<\/p>\n<\/p><\/div>\n<div class=\"xn-content\">\n<p>\n        <span class=\"xn-location\">WASHINGTON<\/span>, <span class=\"xn-chron\">Dec. 15, 2020<\/span> \/PRNewswire\/ &#8212;\u00a0Economic growth expectations for 2020 and 2021 were upgraded for the second consecutive month due to positive developments associated with the COVID-19 vaccine, the likelihood of new fiscal stimulus, and upbeat consumer spending data, according to the <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3012668-1&amp;h=1601980306&amp;u=https%3A%2F%2Fwww.fanniemae.com%2Fresearch-and-insights%2Fforecast%2Ftheres-light-end-covid-19-tunnel&amp;a=latest+commentary\" rel=\"nofollow noopener noreferrer\">latest commentary<\/a> from the Fannie Mae\u00a0(OTCQB: FNMA) <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3012668-1&amp;h=837612182&amp;u=https%3A%2F%2Fwww.fanniemae.com%2Fresearch-and-insights&amp;a=Economic+and+Strategic+Research+(ESR)+Group\" rel=\"nofollow noopener noreferrer\">Economic and Strategic Research (ESR) Group<\/a>. On a full-year basis, real GDP in 2020 is now expected to contract only 2.2 percent &#8212; up from the November forecast&#8217;s expectation of negative 2.5 percent \u2013 before resuming a positive trajectory in 2021 with growth of 4.5 percent, a 1.2 percentage point improvement from the previous forecast. The ESR Group did note a heightened level of near-term uncertainty and potential weakness stemming from new lockdown and social distancing measures amid rapidly rising COVID-19 case counts, hospitalizations, and fatality rates. However, the expectation of ongoing accommodative monetary and fiscal policy, household spending strength, and, most critically, the commencement of widespread vaccine distribution efforts has the consumer well-positioned to accelerate spending come spring, ultimately driving a considerably faster pace of growth in the second half of 2021.<\/p>\n<p>The housing sector continues to perform admirably, but in the absence of additional inventory the ESR Group expects a modest pullback from its current pace. Even though sales are expected to taper in the coming months \u2013 in part due to both a lack of existing homes for sale and construction capacity constraints \u2013 the home sales forecast for 2021 was improved to 6.66 million from 6.41 million. Consistent with a faster pace of existing sales and strong refinance activity, the ESR Group&#8217;s mortgage originations forecast was also upgraded for both 2020 and 2021 to <span class=\"xn-money\">$4.29 trillion<\/span> and <span class=\"xn-money\">$3.47 trillion<\/span>, respectively. <\/p>\n<p>&#8220;Even though near-term economic growth may be slowing, as made evident by the latest employment data, we believe the high probabilities of a successful COVID-19 vaccine distribution and additional federal stimulus will carry the economy through a relatively soft first half of 2021 before accelerating in the second half,&#8221; said <span class=\"xn-person\">Doug Duncan<\/span>, Fannie Mae Senior Vice President and Chief Economist. &#8220;We also expect housing to remain strong, despite slowing from its previously torrid pace, as homebuilders catch up on current commitments and more existing homeowners list their homes to take advantage of strong price growth. We expect the mortgage market to finish 2020 at a historic level of production before slowing slightly but remaining strong in 2021.&#8221;<\/p>\n<p>Visit\u00a0the <u><a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3012668-1&amp;h=1677726350&amp;u=https%3A%2F%2Fwww.fanniemae.com%2Fresearch-and-insights&amp;a=Economic+%26+Strategic+Research\" rel=\"nofollow noopener noreferrer\">Economic &amp; Strategic Research<\/a><\/u> site at <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3012668-1&amp;h=1880688831&amp;u=https%3A%2F%2Fwww.fanniemae.com%2F&amp;a=fanniemae.com\" rel=\"nofollow noopener noreferrer\">fanniemae.com<\/a> to read the full <span class=\"xn-chron\">December 2020<\/span> Economic Outlook, including the <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3012668-1&amp;h=680237390&amp;u=https%3A%2F%2Fwww.fanniemae.com%2Fresearch-and-insights%2Fforecast%2Ftheres-light-end-covid-19-tunnel&amp;a=Economic+Developments+Commentary\" rel=\"nofollow noopener noreferrer\">Economic Developments Commentary<\/a>, <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3012668-1&amp;h=4294541314&amp;u=https%3A%2F%2Fwww.fanniemae.com%2Fmedia%2Fdocument%2Fpdf%2Feconomic-forecast-121520&amp;a=Economic+Forecast\" rel=\"nofollow noopener noreferrer\">Economic Forecast<\/a>, <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3012668-1&amp;h=686057759&amp;u=https%3A%2F%2Fwww.fanniemae.com%2Fmedia%2Fdocument%2Fpdf%2Fhousing-forecast-121520&amp;a=Housing+Forecast\" rel=\"nofollow noopener noreferrer\">Housing Forecast<\/a>, and <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3012668-1&amp;h=2622311411&amp;u=https%3A%2F%2Fwww.fanniemae.com%2Fmedia%2Fdocument%2Fpdf%2Fmf-market-commentary-121520&amp;a=Multifamily+Market+Commentary\" rel=\"nofollow noopener noreferrer\">Multifamily Market Commentary<\/a>. To receive e-mail updates with other housing market research from Fannie Mae&#8217;s Economic &amp; Strategic Research Group, please <u><a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3012668-1&amp;h=125161436&amp;u=https%3A%2F%2Fwww.fanniemae.com%2Fportal%2Fresearch-insights%2Fesr-signup.html&amp;a=click+here\" rel=\"nofollow noopener noreferrer\">click here<\/a><\/u>.<\/p>\n<p>\n        <b>About Fannie Mae<br \/><\/b>Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit:<br \/><u><a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3012668-1&amp;h=1880688831&amp;u=https%3A%2F%2Fwww.fanniemae.com%2F&amp;a=fanniemae.com\" rel=\"nofollow noopener noreferrer\">fanniemae.com<\/a><\/u> | <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3012668-1&amp;h=3464228192&amp;u=https%3A%2F%2Ftwitter.com%2Ffanniemae&amp;a=Twitter\" rel=\"nofollow noopener noreferrer\">Twitter<\/a> | <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3012668-1&amp;h=8508185&amp;u=http%3A%2F%2Fwww.facebook.com%2Ffanniemae&amp;a=Facebook\" rel=\"nofollow noopener noreferrer\">Facebook<\/a> | <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3012668-1&amp;h=1739153846&amp;u=https%3A%2F%2Fwww.linkedin.com%2Fcompany%2Ffannie-mae-corporation_19722%2F&amp;a=LinkedIn\" rel=\"nofollow noopener noreferrer\">LinkedIn<\/a> | <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3012668-1&amp;h=2232635549&amp;u=https%3A%2F%2Fwww.instagram.com%2Fofficialfanniemae%2F&amp;a=Instagram\" rel=\"nofollow noopener noreferrer\">Instagram<\/a> | <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3012668-1&amp;h=2565257207&amp;u=https%3A%2F%2Fwww.youtube.com%2Fuser%2FFannieMaeWeb&amp;a=YouTube\" rel=\"nofollow noopener noreferrer\">YouTube<\/a> | <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3012668-1&amp;h=2347130939&amp;u=https%3A%2F%2Fwww.fanniemae.com%2Fportal%2Fresearch-insights%2Fperspectives.html&amp;a=Blog\" rel=\"nofollow noopener noreferrer\">Blog<\/a><\/p>\n<p>\n        <b>Fannie Mae Newsroom<br \/><\/b><br \/>\n        <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3012668-1&amp;h=3843525349&amp;u=https%3A%2F%2Fwww.fanniemae.com%2Fnews%2F&amp;a=https%3A%2F%2Fwww.fanniemae.com%2Fnews\" rel=\"nofollow noopener noreferrer\">https:\/\/www.fanniemae.com\/news<\/a>\n      <\/p>\n<p>\n        <b>Photo of Fannie Mae<br \/><\/b><br \/>\n        <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3012668-1&amp;h=2992535425&amp;u=https%3A%2F%2Fwww.fanniemae.com%2Fresources%2Fimg%2Fabout-fm%2Ffm-building.tif&amp;a=https%3A%2F%2Fwww.fanniemae.com%2Fresources%2Fimg%2Fabout-fm%2Ffm-building.tif\" rel=\"nofollow noopener noreferrer\">https:\/\/www.fanniemae.com\/resources\/img\/about-fm\/fm-building.tif<\/a>\n      <\/p>\n<p>\n        <b>Fannie Mae Resource Center<br \/><\/b>1-800-2FANNIE<\/p>\n<p>\n        <i>Opinions, analyses, estimates, forecasts, and other views of Fannie Mae&#8217;s Economic &amp; Strategic Research (ESR) group included in these materials should not be construed as indicating Fannie Mae&#8217;s business prospects or expected results, are based on a number of assumptions, and are subject to change without notice. How this information affects Fannie Mae will depend on many factors. Although the ESR group bases its opinions, analyses, estimates, forecasts, and other views on information it considers reliable, it does not guarantee that the information provided in these materials is accurate, current or suitable for any particular purpose. Changes in the assumptions or the information underlying these views could produce materially different results. The analyses, opinions, estimates, forecasts, and other views published by the ESR group represent the views of that group as of the date indicated and do not necessarily represent the views of Fannie Mae or its management. <\/i>\n      <\/p>\n<p id=\"PURL\">\n        <img loading=\"lazy\" decoding=\"async\" title=\"Cision\" width=\"12\" height=\"12\" alt=\"Cision\" src=\"https:\/\/c212.net\/c\/img\/favicon.png?sn=CL23678&amp;sd=2020-12-15\" \/> View original content:<a id=\"PRNURL\" rel=\"nofollow\" href=\"http:\/\/www.prnewswire.com\/news-releases\/economy-poised-for-considerably-stronger-2021-as-covid-19-vaccine-distribution-efforts-commence-301192868.html\">http:\/\/www.prnewswire.com\/news-releases\/economy-poised-for-considerably-stronger-2021-as-covid-19-vaccine-distribution-efforts-commence-301192868.html<\/a><\/p>\n<p>SOURCE  Fannie Mae<\/p>\n<\/p><\/div>\n<p>    <img decoding=\"async\" alt=\"\" src=\"https:\/\/rt.prnewswire.com\/rt.gif?NewsItemId=CL23678&amp;Transmission_Id=202012150830PR_NEWS_USPR_____CL23678&amp;DateId=20201215\" style=\"border:0px;width:1px;height:1px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Housing&#8217;s Remarkable Recent Run Likely Not Sustainable, but Strong Sales Pace Still Expected PR Newswire WASHINGTON, Dec. 15, 2020 \/PRNewswire\/ &#8212;\u00a0Economic growth expectations for 2020 and 2021 were upgraded for the second consecutive month due to positive developments associated with the COVID-19 vaccine, the likelihood of new fiscal stimulus, and upbeat consumer spending data, according to the latest commentary from the Fannie Mae\u00a0(OTCQB: FNMA) Economic and Strategic Research (ESR) Group. On a full-year basis, real GDP in 2020 is now expected to contract only 2.2 percent &#8212; up from the November forecast&#8217;s expectation of negative 2.5 percent \u2013 before resuming a positive trajectory in 2021 with growth of 4.5 percent, a 1.2 percentage point improvement from the previous forecast. The &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.marketnewsdesk.com\/index.php\/economy-poised-for-considerably-stronger-2021-as-covid-19-vaccine-distribution-efforts-commence\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Economy Poised for Considerably Stronger 2021 as COVID-19 Vaccine Distribution Efforts Commence&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-399890","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Economy Poised for Considerably Stronger 2021 as COVID-19 Vaccine Distribution Efforts Commence - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/economy-poised-for-considerably-stronger-2021-as-covid-19-vaccine-distribution-efforts-commence\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Economy Poised for Considerably Stronger 2021 as COVID-19 Vaccine Distribution Efforts Commence - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"Housing&#8217;s Remarkable Recent Run Likely Not Sustainable, but Strong Sales Pace Still Expected PR Newswire WASHINGTON, Dec. 15, 2020 \/PRNewswire\/ &#8212;\u00a0Economic growth expectations for 2020 and 2021 were upgraded for the second consecutive month due to positive developments associated with the COVID-19 vaccine, the likelihood of new fiscal stimulus, and upbeat consumer spending data, according to the latest commentary from the Fannie Mae\u00a0(OTCQB: FNMA) Economic and Strategic Research (ESR) Group. On a full-year basis, real GDP in 2020 is now expected to contract only 2.2 percent &#8212; up from the November forecast&#8217;s expectation of negative 2.5 percent \u2013 before resuming a positive trajectory in 2021 with growth of 4.5 percent, a 1.2 percentage point improvement from the previous forecast. 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Market Newsdesk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.marketnewsdesk.com\/index.php\/economy-poised-for-considerably-stronger-2021-as-covid-19-vaccine-distribution-efforts-commence\/","og_locale":"en_US","og_type":"article","og_title":"Economy Poised for Considerably Stronger 2021 as COVID-19 Vaccine Distribution Efforts Commence - Market Newsdesk","og_description":"Housing&#8217;s Remarkable Recent Run Likely Not Sustainable, but Strong Sales Pace Still Expected PR Newswire WASHINGTON, Dec. 15, 2020 \/PRNewswire\/ &#8212;\u00a0Economic growth expectations for 2020 and 2021 were upgraded for the second consecutive month due to positive developments associated with the COVID-19 vaccine, the likelihood of new fiscal stimulus, and upbeat consumer spending data, according to the latest commentary from the Fannie Mae\u00a0(OTCQB: FNMA) Economic and Strategic Research (ESR) Group. On a full-year basis, real GDP in 2020 is now expected to contract only 2.2 percent &#8212; up from the November forecast&#8217;s expectation of negative 2.5 percent \u2013 before resuming a positive trajectory in 2021 with growth of 4.5 percent, a 1.2 percentage point improvement from the previous forecast. The &hellip; Continue reading \"Economy Poised for Considerably Stronger 2021 as COVID-19 Vaccine Distribution Efforts Commence\"","og_url":"https:\/\/www.marketnewsdesk.com\/index.php\/economy-poised-for-considerably-stronger-2021-as-covid-19-vaccine-distribution-efforts-commence\/","og_site_name":"Market Newsdesk","article_published_time":"2020-12-15T13:33:37+00:00","og_image":[{"url":"https:\/\/c212.net\/c\/img\/favicon.png?sn=CL23678&amp;sd=2020-12-15","type":"","width":"","height":""}],"author":"Newsdesk","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Newsdesk","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/economy-poised-for-considerably-stronger-2021-as-covid-19-vaccine-distribution-efforts-commence\/#article","isPartOf":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/economy-poised-for-considerably-stronger-2021-as-covid-19-vaccine-distribution-efforts-commence\/"},"author":{"name":"Newsdesk","@id":"https:\/\/www.marketnewsdesk.com\/#\/schema\/person\/482f27a394d4fda80ecb5499e519d979"},"headline":"Economy Poised for Considerably Stronger 2021 as COVID-19 Vaccine Distribution Efforts Commence","datePublished":"2020-12-15T13:33:37+00:00","mainEntityOfPage":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/economy-poised-for-considerably-stronger-2021-as-covid-19-vaccine-distribution-efforts-commence\/"},"wordCount":710,"image":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/economy-poised-for-considerably-stronger-2021-as-covid-19-vaccine-distribution-efforts-commence\/#primaryimage"},"thumbnailUrl":"https:\/\/c212.net\/c\/img\/favicon.png?sn=CL23678&amp;sd=2020-12-15","inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/economy-poised-for-considerably-stronger-2021-as-covid-19-vaccine-distribution-efforts-commence\/","url":"https:\/\/www.marketnewsdesk.com\/index.php\/economy-poised-for-considerably-stronger-2021-as-covid-19-vaccine-distribution-efforts-commence\/","name":"Economy Poised for Considerably Stronger 2021 as COVID-19 Vaccine Distribution Efforts Commence - 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