Richard DeKaser, chief economist at National City Corporation, told CNBC’s “Morning Call” that the worst of the housing slump is over.
He looks for 3.2% growth in the second quarter and 2.5% to 3% growth in the second half of this year. He acknowledged that such a forecast may not “feel pleasant,” but it’s “consistent” with the “soft landing” the Federal Reserve has been trying to engineer.
“Even if the housing market continues to be in decline -- and it is and will likely remain so -- but if that decline is at a slower pace, its overall drag on the rest of the economy is diminishing,” DeKaser said. “In that sense, I think it can be fairly asserted that the worst is behind us, but that doesn’t mean it’s over.”