Freddie Mac economist sees housing emerging from winter dormancy
A variety of encouraging indicators suggest the housing market is awakening, “much like the garden flora reemerging from their winter dormancy,” Frank Nothaft, Freddie Mac chief economist said Wednesday.
In the agency’s latest economic outlook report, Nothaft predicts stronger economic growth in 2012 will translate to a reduction in the unemployment rate below 8.3%. He expects 30-year fixed-rate mortgages to gradually increase throughout the year to 4.5% and new rental construction to reach heights not witnessed since 2005 — if the current pace is maintained, that is. Read More.