Bankers Offering Optimistic Projections for Expanding Economic Activity

WASHINGTON, DC – Pent-up demand may fuel a wildfire of economic activity this year, leading to a 7.2 percent growth rate according to the American Bankers Association’s Economic Advisory Committee.

The group of banking economists are expecting the unemployment rate to dip to 5 percent at the end of this year, and expects a 4 percent rate in 2022 which is also known as “full employment.”

A looming concern by many market watchers and economists is the rate of inflation. The committee continues to believe the temporary supply-side constraints and strong demand will contribute to elevated levels of inflation but should subside by year-end.

The housing market in the United States has been crazy over the past year ad home values have soared under the weight of tight supply and tremendous demand. In many instances, future homeowners have been offering premiums in excess of 20 percent of asking prices to secure the property they want.

With that, the 30-year mortgage rate is expected to increase from 3.1 percent today to 3.3 percent in December and 3.6 percent per year in 2022. This will lead average existing home prices to expand by almost 10 percent in 2021 and 4 percent next year.
(SOURCE: All Ag News)