Freddie Mac Scales Back Expectations for 2014

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Scaling back forecasts is an indication of steady growth at a sustainable rate .  This is a good sign for the housing market. Freddie Mac’s earlier outlook was more wishful thinking than anything. For a more detailed look at this subject – please read the article below.

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Despite a disappointing first quarter and a mediocre second quarter, Freddie Mac still expects the economy to improve throughout the second half of 2014. The company is, however, tempering its New Year’s optimism.

In its June U.S. Economic and Housing Market Outlook, Freddie offers a mid-year assessment that sees more humble growth in gross domestic product that mirrors the 2 to 2.5 percent growth that the economy has seen the past few years.

Contributing to this modest growth will be an upswing in the workplace. U.S. unemployment is down from 6.7 to 6.3 percent, and May showed the fourth straight month in which 200,000 new jobs were created.

For housing, the even-better news is that construction jobs are picking up, particularly in the residential building and specialty trade sector. These areas are averaging about 9,500 jobs per month so far this year.

Still, there’s hardly cause for joy bells just yet. “Construction has rebounded over the past two years but is still significantly below the levels one would expect to see given projections of household formations,” said Frank Nothaft, Freddie Mac’s chief economist.

Nothaft is also tenuous in his view of the overall housing picture. “We’re nearly half way through the year and single-family housing remains weaker than we projected six months ago, while multifamily appears to be right on track,” he said.

To read the complete article – please use the link below.

Freddie Mac Scales Back Expectations

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