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After Two Years, Residential Fixed Investment Returns to Positive Territory

Posted To: MND NewsWire

Even though the pace of home building remains below where the industry would like it to be, Fannie Mae says it helped drive residential fixed investment into the black in the third quarter. The company's Economic and Strategic Research Macroeconomic Forecast Team says it would be the first time that component will make a positive contribution to the gross domestic product (GDP) since 2017. The team had previously forecast a positive contribution from residential fixed investment, but data has come in stronger than anticipated and they have revised it upward to 4.2 percent annualized in the third quarter. This strength should carry into the fourth quarter, putting the remainder of the year on a solid footing. "What had been a drag on the economy for almost two years will now likely be a near...(read more)