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Freddie Mac Optimistic about Housing Market

Both Freddie Mac and Fannie Mae, the Government Sponsored Enterprises project a better future for the 2012 housing and unemployment markets. This projection comes at a time when interest rates remain at all-time lows.

Freddie Mac predicts slow but steady improvements in the real estate market as well as the economy as a whole.  The reasons are affordable pricing for homes, historically low interest and mortgage rates and companies hiring more.

Mortgage rates are predicted to stay low, making buying a new home more affordable.  There will also be a lot more acticity on the refinancing front with the introduction of the Harp 2.0 Refinance Program in March. Fannie Mae also released a report which was similar to Freddie's this week.  In Fannie's report there were indications that the real estate market will actually contribute to the GDP (gross domestic product) growth in 2012 after a multi-year slump.

Both GSEs realize there could be a crisis in Europe which makes their forecasts only optimistic at best.

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