Freddie Mac released its U.S. Economic and Housing Market Outlook with five projections for 2012.
Frank Nothaft, Freddie Mac’s vice president and chief economist, said there are indications that the economy and housing market are slowly gaining ground. “Sustained and increased job growth beyond the average monthly payroll gains of 130,000 so far this year ending in November are essential,” he said in a statement.
Nothaft also expects mortgage rates to remain low through the middle of 2012, and for rentals to continuing leading housing market improvements.
“All told, next year will be another bumpy ride,” he said.
Five outlook highlights:
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.
Source: Freddie Mac
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