After many years of dragging down Gross Domestic Product, the housing market is expected to have a positive impact on the measure, according to Fannie Mae.
According to the government-sponsored enterprise's Economic and Housing Outlook, both existing and new home sales showed positive gains from the second to third quarter and home prices saw the largest year-over-year bump in six years. This should help housing become a positive contributor to GDP.
However, with housing on accounting for 2.5 percent of the measure, it is unlikely to provide a substantial boost, as growth is expected to remain below 2 percent through the first quarter of 2013.
"The tone of the economic data we’ve seen during the past month has been modestly favorable, but our expectations for growth this year remain subdued," said Fannie Mae Chief Economist Doug Duncan.
The real estate market could be seeing an even bigger come back if lending wasn't so strict. Many worthy borrowers have been unable to obtain a mortgage due to tight lending restrictions, which has led many Americans to not be able to take advantage of record low interest rates.
