Economists at Fannie Mae say the United States economy is showing good momentum, but is threatened by Europe’s economic troubles and weak housing market and possibly the Gulf of Mexico oil spill.
Fannie Mae said in its May Economic Outlook that the economy is on a path to a “self-sustaining economic recovery” due to a strengthening job market.
However, the recent surge in home sales will likely see a pullback in the second quarter as federal tax credits for homebuyers expire.
If employment can continue to grow and confidence in the labor market is sustained, Fannie Mae predicts that home sales could pick up again by the end of the year.
