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Residential Real Estate News
U.S. Housing Market Has Begun Nascent Recovery, Says Freddie Mac Report
According to Freddie Mac's U.S. Economic and Housing Market Outlook for March, there are signs the U.S. housing market is awakening from its depression-like condition of the past few years and beginning, though slowly, to make a nascent recovery.
Frank Nothaft, Freddie Mac's 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."
Freddie Mac 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.
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