Freddie Mac’s Economic and Housing Research Group Sees Lots of Positives in Current Economic Environment

Freddie Mac’s Economic and Housing Research Group is reporting that they are seeing lots of positives in the current economic environment. The company’s quarterly forecast points to the increasing availability of COVID-19 vaccines and the easing of virus-related restrictions, the passage of the American Rescue plan, and its cash stimulus for households as setting the stage for economic growth and sending consumer confidence to a post pandemic high in March. The labor market, while still needing to add 8.4 million jobs, put 916,000 on the books last month — the greatest gain since August. The report concludes that conditions should remain generally favorable for the housing and mortgage market through 2022, although rising rates could provide headwinds that slow housing activity. The group predicts the 30-year fixed mortgage rate will average 3.4% in Q4 of 2021, rising to 3.8% in Q4 of 2022.