Economists Revamp Forecasts for the Better

In light of more positive news on the economy and housing market in recent weeks, economists seem to be updating their forecasts to be rosier. I’d think this fact alone would help boost consumer confidence, but the numbers are speaking for themselves.

Last week the Bureau of Economic Analysis released data indicating GDP rose 2.5% in the third quarter, due largely to consumer spending.  And, the Mortgage Bankers Association reported a 4.9% rise in mortgage applications last week, as both home purchases and refinances increased. Investors helped fuel the rise in activity, a positive sign for the housing market that that group is ready to buy again.

The National Association of Realtors is projecting a 1% rise in sales of resale homes this year and another 4.3% increase in 2012, with the existing-home median price rising – yes, rising – 2.6 percent in 2012.

Other economic indicators are relieving recession fears, and fortunately the “double dip” is looking more like a once-popular news sound bite rather than reality. Of course time will tell how this economy plays out, but when the media start sounding upbeat, that’s a win-win!