A recession is likely to arrive sooner rather than later, Fannie Mae says

A recession is likely to arrive sooner rather than later, Fannie Mae says

Fannie Mae had some dour predictions in its latest economic forecast. Following its pronouncement last month that a recession is coming in 2023, the government-sponsored enterprise reveal in a report today that it now expects a downturn much sooner. Without some sustained price relief on durable goods, energy, and food in coming quarters — in order for real income growth to return to positive territory — the possibility of a late-2022 recession becomes more likely.

READ: Recession could arrive sooner than expected: Fannie Mae

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In other news today:

Mortgage rates fall amid market uncertainty

The 30-year fixed-rate mortgage average dropped 5 basis points to 5.25% from 5.3% one week earlier for the seven-day period ending May 19, according to Freddie Mac’s Primary Mortgage Market Survey. The current 30-year average is 125 basis points above its level of one year ago, when it came in at 3%.??

Better reportedly cuts more workers ahead of SPAC merger

The story is not improving for the lender and servicer, with reports surfacing that it is offering buyouts to workers in India. The lender, which has already spent up to $84.1 million in layoff expenses, cut approximately 920 workers in India, TechCrunch and local media outlets first reported.?

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Cynthia M. Clarke, XCO?

Mortgage Loan Officer, XCO? at Paramount Residential Mortgage Group Inc. (PRMG Inc.) NMLS #1851481

2 年

As we know, the economic condition as it is cannot continue for long periods. Most of us cannot not sustain these price increases across the board.

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Robyn Mahoney

Marketing Leader | Financial Services

2 年

Good time to consider automating mortgage origination. We just launched an automated origination workflow to help lenders manage some of the new cost and resource pressures: https://indecomm.com/geniusworks-intelligent-mortgage-origination-workflow

Thank you for sharing.

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