A Slow, Steady Path to Recovery
Freddie Mac just released its February 2012 U.S. Economic and Housing Outlook 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.
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