January 2012 U.S. Economic and Housing Market Outlook

Toasting the New Year with a Glass Half-Full

News provided by

Freddie Mac

Jan 18, 2012, 11:01 ET

MCLEAN, Va., Jan. 18, 2012 /PRNewswire/ -- Freddie Mac (OTC: FMCC) released today 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. 

Outlook Highlights                                                                         

  • 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. 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.

  • "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."

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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