Incoming data for March has caused Fannie Mae to again
revise its forecast for the year’s growth in gross domestic product (GDP). The company’s
Economic and Strategic Research (ESR) team said a sharp uptick in the economy
last month followed a weather-related retreat in February. Most evident was a jump in employment
to 916,000 new jobs in March from 468,000 in February, the fastest pace since
August 2020. This growth is expected to continue. Auto sales were also up, and consumer
confidence surveys jumped to their highest levels since the April 2020 downturn.
As a result of these and other heightened indicators, Fannie Mae now sees growth reaching 6.8
percent by the fourth quarter on a year-over-year basis, up from 6.6 percent in
the earlier forecast. Expectations for 2022 are unchanged at 3.0 percent.