Real Estate

May 20, 2013
Housing will reaccelerate economic growth: Fannie Mae

The slow in economic activity is partly due to ongoing fiscal drags, including the budget sequester. However, a...

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In a recent homebuilding note, Jay McCanless, an analyst for Sterne Agee, encourages investors to take advantage of the weakness created by national housing reports. The analyst recommends buying Meritage Homes, D.R. Horton and The Ryland Group.

"Household formations are expected to gradually rise to a 1.2-to-1.4 million annual pace in coming years, supporting a sustained level of construction," said Freddie Mac Vice President Frank Nothaft.

ReWired

"When combing through the GDP accounts, we estimate that total housing-related spending—beyond
just residential construction—accounts for a much larger share of the economy than some market participants currently may believe," Deutsche Bank analysts write.

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