Are happy days here again for the housing market? According to Freddie Mac's U.S. Economic and Housing Market Outlook for March, the housing market is showing signs of ‘awakening from its depression-like condition of the past few years and beginning, though slowly, to make a nascent recovery.’
According to the report, Freddie Mac expects 30-year fixed-rate mortgages to ‘gradually increase throughout the year to about 4.5 percent.’ The report also forecasts new rental construction for 2012 to be the highest since 2005, if the current pace is maintained. Freddie Mac also says home values may be stabilizing in more markets, even though February's new and existing home sales dipped 1%.
‘The housing market continues to struggle amid strong economic headwinds,’ says Frank Nothaft, Freddie Mac's vice president and chief economist. ‘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.’
Freddie Mac's full report is available online.