There are signs that the housing market is awakening from its depression-like condition of the past few years and beginning, though slowly, to make a nascent recovery, according to the U.S. Economic and Housing Market Outlook for March from Freddie Mac.
Frank Nothaft, Freddie Mac, vice president and chief economist, said : The housing market continues to struggle amid strong economic headwinds. However, a variety of encouraging indicators suggest that the housing market may be feeling a nascent recovery, and more neighborhoods may see a stabilization in overall demand and housing values this spring.
Here are the outlook highlights.
- Stronger economic growth this year will translate into a further reduction in the unemployment rate below 8.3 percent.
- With stronger economic growth, home sales and originations forecasts have been revised upward.
- Expect 30-year fixed-rate mortgages to gradually increase throughout the year to about 4.5 percent.
- New rental construction for 2012 is likely to be the highest since 2005 if the current pace is maintained.
- Even with a 1 percent dip in new and existing homes sales in February, median sales prices moved up 0.3 percent on a year-over-year basis, a hint that home values may be stabilizing in more markets around the nation.
SOURCE Freddie Mac
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