Freddie Mac Predicts Slow Upturn in Housing

Washington, DC, Dec. 16, 2011 -- Freddie Mac economist Frank Nothaft doesn't see a lot of change ahead for the housing market next year, predicting slow improvement.

Among the predictions:

Mortgage rates will remain near record lows at least through the middle of the year.

Home sales will increase, but will not be robust and prices will increase only in areas where foreclosures are few and vacancies low.

In the mortgage industry, most of the lending will be for rental apartments rather than single-family for sale housing.

On the broader economy, he expects growth to increase to about 2.5% and the unemployment rate to decline, but remain above 8%.

“While the headwinds remain strong going into 2012,” he said. “There are indications the economy and the housing market are gaining ground, albeit slowly.”