Despite Sluggish Economy, Freddie Mac Expects Improvements in the Housing Market

In response to the latest US and global economic reports reflecting slow growth and moderate inflation in the final quarter of 2015, Freddie Mac provided their latest projections for the next two years in their Economic & Housing Research report. The government sponsored enterprise said they anticipated real economic growth of 2% in 2016 and 2.3% in 2017. With the recent decline to 4.9% in January, Freddie Mac projected the unemployment rate to average at 4.9% for the remainder of 2016 and then decline to 4.8% in 2017. As for the housing market, Freddie Mac said that it “was one of the few bright spots in the economy last year, and we expect continued improvement in 2016.”

As the disparity between supply and demand has continued, the report indicated that home prices are expected to grow in 2016 with rent moderating in certain metro areas. Additionally, low mortgage interest rates could spur home purchases and refinances throughout the coming year. Freddie Mac pointed to the latest data on existing-home sales, new residential sales and housing starts as key indicators of the direction the housing market will go in the coming months. Read the full report at

Share this article: