Fannie Mae (OTC: FNMA) in late December put out its economic forecast for 2020, and it's much more gung-ho about the current state of the economy and the housing sector in general. The revised forecast is good news for mortgage originators and homebuilders.
Housing has been the missing piece of the puzzle for the U.S. economy since the housing bubble burst over a decade ago during the Great Recession. Housing construction has historically been the first sector to recover after a recession, but this time around it ended up being the last. Much of that was due to excesses built up during the bubble years. Those excesses have long been worked off. Seeing that, Fannie Mae has raised its activity forecasts for 2020.