The housing market is stronger today than at any point since
the Great Recession and has made progress in several key areas after hitting
bottom in 2009, Freddie Mac reports in a blog post looking at the state of the
housing market heading into spring.
Home sales are up 13 percent since their low point, Freddie
Mac reports. Frank Notaft, Freddie Mac’s chief economist, predicts that home
sales will rise about 3 percent in 2014.
Also, the agency reports that housing starts are up 50
percent since hitting bottom. Freddie Mac is predicting a nearly 20 percent
increase in new-housing starts in 2014, “which will begin to help ease tight
inventories in many markets.”
Housing prices have also been on the upswing, about 16
percent higher than their bottom in 2009, Freddie Mac reports. They expect home
values to continue to rise this year, but at a more moderate 5 percent pace.
Also, researchers say many markets are still posting housing values that are
below their 2006 peaks.
Freddie Mac is forecasting mortgage rates to remain near
their historic lows this year, but rates are expected to rise about a
half-percentage point during the year to around a 5 percent average by the end
of the year.
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