Projected Mortgage Rates & Home Sales

January 18th, 2012 | Mortgage Rates, Economic Outlook

Happy Wednesday all.....

Today Freddie Mac released its U.S. Economic and Housing Market Outlook for January showing that while the economy is undoubtedly in a better place than the same time a year ago, a speedy recovery still seems unlikely this year. 

Highlights Noted:                                                                       

• Economic growth will likely strengthen to about 2.1 percent in the first quarter.
• The current U.S. unemployment rate of 8.5 percent is likely to increase after seasonal gains are reversed.
• Mortgage rates are projected to remain very low, at least in the beginning of 2012.
• For 2012, expect home sales to grow between 2 and 5 percent year-over-year.
• The housing-market recovery will be delayed as long as there remains a large gap between buyer and seller sentiment.

Click here to view the complete January 2012 U.S. Economic and Housing Market Outlook [PDF]. Freddie Mac compiles data on major economic and housing and mortgage market indicators and offers forecasts based on those indicators.

According to Frank Nothaft, Freddie Mac vice president and chief economist, "With the new year comes a sense of cautious optimism. There are some positive signs in the job market and consumer confidence; housing is starting to raise hopes for continued gradual economic recovery. But the economy still is giving some mixed messages."

According to the Bureau of Labor Statistics, California has a seasonally adjusted 11.3% unemployment rate. 

Bottom line: Mortgage rates are projected to remain low and home sales are expected to grow for the time being!

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Make it a great day!