February 2012 U. S. Economic and Housing Market Outlook

A Slow, Steady Path to Recovery

News provided by

Freddie Mac

Feb 22, 2012, 10:30 ET

MCLEAN, Va., Feb. 22, 2012 /PRNewswire/ -- Freddie Mac (OTC:FMCC) released today its U.S. Economic and Housing Market Outlook for February showing cautious signs of the economy and housing market moving in a positive direction fueled by an environment of low interest rates and more favorable job prospects for Americans.

Outlook Highlights                                                                         

  • Job gains exceeded expectations for the past two months, but those leaving their jobs voluntarily were 2 million in December compared to the pre-recession average of 3 million, reflecting worker uneasiness.
  • The unemployment rate fell to 8.3 percent; and weekly unemployment benefits applications decreased for the third consecutive week to 348,000, the fewest since the first week in March 2008.
  • More warmth is expected in the housing market sometime in 2013, as the economy continues on its slow path to a stronger recovery in a low-interest-rate environment.
  • Low mortgage rates will continue to keep homebuyer affordability high and help drive more HARP refinances.
  • Consumers sentiment weakened in January while at the same time homebuilder confidence continues to show signs of growth.

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

Quotes
Attributed to Frank Nothaft, Freddie Mac, vice president and chief economist.

  • "The US economy continues to build on the momentum from the end of last year. Our outlook anticipates gradual, but steady, improvement in the economy and the housing market, supported by low interest rates and brightening job market prospects."

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

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

SOURCE Freddie Mac

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