Freddie Mac issued its 2012 forecast and there is a lot of positives to focus on. First of all they are predicting economic growth that is about 2.5 percent. Retail sales have been stronger, and inventory levels are low which equates to growth.
The second prediction is that the unemployment rate will decline. The last quarter of 2011 the rate has declined. We all know the economy rides the wave of the economy. As the unemployment rate declines the economy will rebound.
Interest rates are predicted to remain low at least through the middle of the year. 30 year mortgage rates are around 4% and they predict to remain in that range for at least the first half of the year. This should help the housing market in several avenues.
Lastly Freddie Mac is expecting a better housing market in 2012. The rental market appears to be leading the housing recovery based on rents increasing and low vacancies. This is resulted in increases in rental income properties. A good rental market should translate into more construction of rental buildings.
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