Freddie Mac’s chief economist, Frank Nothaft, recently released the GSE’s “U.S. Economic and Housing Market Outlook for January.” The report is positive and predicts modest, but steady growth. The key points as presented in a DSNews.com article are:
- According to a survey from the Mortgage Bankers Association, “80 percent of households say now is a good time to purchase a home…” However, only “7.6 percent say now is a good time to sell.”
- Mr. Nothaft expects “a 2 percent to 5 percent increase in home sales in 2012 amid moderate economic growth over the year.”
- “There are some positive signs in the job market and consumer confidence; housing is starting to raise hopes for continued gradual economic recovery.”
- “The Conference Board Consumer Confidence Index posted its highest rate since April at the end of the year—64.5.”
- “The housing market finished the year with seasonally subdued prices, rising home sales in November, and a decline in inventory to a six to seven-month supply.”
- “Freddie Mac expects the economy to grow about 2.1 percent over the first quarter of this year and real gross domestic product growth to total 2.7 percent for the year.”
The report noted counter-balancing concerns, including the fact that December’s job growth and consumer confidence levels may be seasonal and therefore could be reversed in January.
Overall key indicators demonstrate positive movement in a positive direction. For the first time in a long time, economists and analysts are cautiously using the words “gradual economic recovery.”
For additional information, please join us at FirstPrestonHT.com or on our Facebook and Twitter pages.