Freddie Mac issues 2012 outlook
“While the headwinds remain strong going into 2012, there are indications the economy and the housing market are gaining ground, albeit slowly,” says Frank Nothaft, Freddie Mac, vice president and chief economist. “Sustained and increased job growth beyond the average monthly payroll gains of 130,000 so far this year (ending in November) are essential. In housing, look for the rental market to lead the way and for some improvement in the single-family space in parts of the country.
Outlook highlights for 2012
• Economic growth will likely strengthen to about 2.5 percent in 2012.
• The U.S. unemployment rate will decline but likely remain above 8 percent.
• Mortgage rates will likely remain very low, at least through mid-2012.
• Housing activity will be better in 2012, but not robust.
• Expect less single-family originations but more multifamily lending in 2012.
Freddie Mac offers background information on its website, “Peering into 2012.” Freddie Mac compiles data on major economic and housing and mortgage market indicators and offers forecasts based on those indicators.
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