MBA Anticipates More Than 3% Economic Growth Through 2008

WASHINGTON, DC-The Mortgage Bankers Association has released its three-year economic forecast update, predicting strong economic growth of an estimated 3.5% through 2008. The update reiterates conclusions detailed in MBA’s July update, including projections of a solid labor market, despite the negative impact Hurricane Katrina has had on employment in the Gulf region.

MBA attributes much of the anticipated economic growth to the housing market which has been able to assist in the economy’s ability to override drastically increased energy prices and a growing trade deficit. Residential mortgage production will reach $2.78 trillion for 2005, and single-family home sales, as MBA surmises, are expected to reach record highs for the fifth year in a row.