Freddie housing market outlook positive

Freddie Mac's February 2012 U.S. Economic and Housing Market Outlook Report indicated that a number of positive economic indicators could make for a slow, but steady, real estate industry recovery during the course of the year.

Freddie Mac's February 2012 U.S. Economic and Housing Market Outlook Report indicated that a number of positive economic indicators could make for a slow, but steady, real estate industry recovery during the course of the year.

Variables, including low home prices, affordable interest rates and promising job prospects, are expected to play a positive role in the housing market. Financial regulators at the government-sponsored enterprise note the improvements in these sectors could potentially gain enough speed to carry over into March.

"The U.S. economy continues to build on the momentum from the end of last year," said Freddie Mac vice president and chief economist Frank Nothaft. "Our outlook anticipates gradual, but steady, improvement in the economy and the housing market, supported by low interest rates and brightening job market prospects."

However, the report found that not every aspect weighing in on a housing market recovery were positive, as consumer sentiment weakened in January. This loss in sentiment came at a time when builder confidence recorded significant gains, which could result in some new homes left unsold in 2012.



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