That’s contributed to a protracted housing market slowdown as borrowers step to the sidelines thanks to much-publicized affordability woes.
The report indicated the US economy is likely to perform better throughout 2024 than the World Bank had earlier predicted, with expansion of 2.5% anticipated – a marginal increase of 0.09% over its initial forecast of 1.6%.
Growth is expected to slow to 1.8% next year thanks to a “trickle down” effect of high interest rates, preventing consumers from spending more – specifically on durable goods and residential investments.
“Broader consumer spending is expected to slow due to moderating growth in household income as labor market tightness recedes and savings diminish,” the report explained.
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