People planning on moving this year will likely take heart in Fannie Mae
's economic projections for 2011.
With the release of Fannie Mae's Economic and Market Analysis Group's 2011 Economic Outlook, the mortgage giant expects to see a 3.6 percent growth in the U.S. economy this year, an increase of about 1 percent over last year. Fannie Mae says the increase in consumer spending in 2010 is likely responsible.
"The economy has regained momentum entering 2011 and we see significant improvement in the economy's ability to grow compared to 2010," said Doug Duncan, Fannie Mae's chief economist.
While the economy may steadily improve, Duncan doesn't expect housing values to increase any time soon. Instead, he says there'll be a gradual improvement in 2011, setting the stage for a strong recovery in 2012.
Fannie Mae's projections are in line with the National Association of Home Builders', as they expect home values to continue falling into the summer.