Markets & Economy

US housing market loses momentum

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Fannie Mae economists have downgraded their expectations for the U.S. housing market in the second half of this year, even though they are more optimistic about the prospects for overall economic growth. The economy grew faster than anticipatedĀ in the second quarter, prompting Fannie Mae's Economic and Strategic Research Group to boost its U.S. gross domestic product (GDP) projection to an average of 3 percent for the last six months of the year. But housing will not be the driver of growth it was previously expected to be, the group said. "(O)ur view of the housing market has deteriorated as housing activity appeared to have lost momentum at the end of the second quarter," Fannie Mae economists said in a monthly economic outlook. Existing-home sales rose in the second quarter, but they were not enough to overcome decreases in the first quarter orĀ bring total existing-home sales for the first half of the year up to last year's levels. Pending home sales declined in June and ...