Fannie Mae released its May 2018 Economic and Housing Outlook yesterday revealing that despite a lusterless first three months of 2018, it expects home sales to post decent gains both this year and next, as prices increase and affordability declines amid low inventory. On the economic front, Fannie Mae is forecasting that Gross Domestic Product will average 2.7% in 2018 due in part to strengthening consumer spending. One headwind to the economic outlook is the continued rise in oil prices as they may offset some of the increase in disposable income from the recent tax cuts while also putting upward pressure on headline inflation.
Memorial Day marks the unofficial start of summer, and Americans will kick off the season by traveling in near-record numbers. According to AAA, more than 41.5 million Americans will travel this Memorial Day weekend, nearly 5% more than last year and the most in more than a 12 years. About 36 million of those travelers will drive to their holiday weekend destination. “Gas prices are higher. People will be spending about $6 more for a full tank of gas, but that’s not going to stop people from traveling this Memorial Day,” Jenkins said. “This is the kick-off for the summer season, the economy is still good, and overall people are ready to roam.” The national price for a gallon of gas is $2.91, about $0.55 more than this time last year. AAA