U.S. economic growth predicted to be 2.5% in 2012, and U.S. jobless rate will fall but stay above 8%, predicts Freddie Mac; mortgage rates expected to remain very low, with improved but not robust housing activity
December 14, 2011
– Freddie Mac (OTC: FMCC) released today its U.S. Economic and Housing Market Outlook for December providing five projections for the coming year.
Economic growth will likely strengthen to about 2.5 percent in 2012.
The U.S. unemployment rate will decline but likely remain above 8 percent.
Mortgage rates will likely remain very low, at least through mid-2012.
Housing activity will be better in 2012, but not robust.
Expect less single-family originations but more multifamily lending in 2012.
Click here to view the complete December 2011 U.S. Economic and Housing Market Outlook. Freddie Mac compiles data on major economic and housing and mortgage market indicators and offers forecasts based on those indicators.
Attributed to Frank Nothaft, Freddie Mac, vice president and chief economist.
"While the headwinds remain strong going into 2012, there are indications the economy and the housing market are gaining ground, albeit slowly. Sustained and increased job growth beyond the average monthly payroll gains of 130,000 so far this year ending in November are essential. In housing, look for the rental market to lead the way and for some improvement in the single-family space in parts of the country. All told, next year will be another bumpy ride."
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Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.