10 Nov Normalized Economy Will Prop Up Housing
A pick-up in the economy is expected to help propel the housing market forward with an increase in household formation and a stronger recovery, according to Freddie Mac’s Economic and Housing Market Outlook.
“We are getting closer to a more normalized economy, and now we are expecting to see housing driven by fundamentals, and, in fact, we’ve already seen this in some markets,” says Frank Nothaft, Freddie Mac’s chief economist.
“The economic growth and labor market gains we saw this year are projected to continue, strengthening household formations and the housing sector. A recovering housing sector will sustain the rally in homebuilding, despite likely increases in long-term rates. Increased construction activity will further accelerate the improvement in labor markets and fuel even more household formations and more housing demand. The result is in an economy that gradually recovers back towards it’s potential.”
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