“Economic Uncertainty for 2012”

The article below has numerous quotes from Fannie Mae’s chief economist. With our country dealing with Obamacare, Dodd-Frank, HVCC, politicians looking to increase costs for FHA, increase fees for Fannie Mae and Freddie Mac, unemployment rates above 8% (which is really more than double that), they see uncertainty for 2012? Are you kidding me??

Fannie Mae: Economy Ends Year on Sounder Note, With 2012 Uncertain

The economy will have something to celebrate in the New Year as the fourth quarter closes, according to Fannie Mae, which said Tuesday that economic growth, upward-bound employment figures, and stronger sales would help cushion a slowly stabilizing recovery.

The GSE’s internal think tank released an economic outlook that forecasts 2.5 percent in economic growth – the biggest push quarterly this year – and better employment numbers, in lieu of news from the Labor Department that the country picked up 140,000 private-sector jobs in November.

Fannie Mae noted that consumer spending leapt forward during both quarters, running ahead of income growth, as savings fell from 4.8 percent over the second quarter to 3.8 percent over the third quarter.

Doug Duncan, chief economist with Fannie, decoupled projections for this year from forecasts for next year, saying in a statement that “the housing market will likely remain subdued [in 2012] – a reflection of the winter season, an expected slowdown in economic activity, and a potential increase in distressed sales.

“[W]e expect that the country’s fiscal problems will be hotly debated over the coming year and will weigh on the market,” he added. “The very large fiscal impact of pending tax and legislation decisions will likely tamp down overall growth expectations for 2012.”

The outlook follows statements by Duncan that euro zone countries – beset by low growth and mounting public debt – have already entered a recession.

He made the remarks at the 2011 MPact Mortgage Banking Conference and Expo, which the Five Star Institute convened at the Dallas Omni in early December.