2012 U S Economic and Housing Market Outlook

Freddie Mac released its U.S. Economic and Housing Market Outlook for 2012:

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.

According to Frank Nothaft, Freddie Mac, vice president and chief economist, ”While the headwinds remain strong going into 2012, there are indications the economy and the housing market are gaining ground, albeit slowly. 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. All told, next year will be another bumpy ride.”

Get the latest information from Freddie Mac’s Office of the Chief Economist on Twitter: @FreddieMac

 

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