Freddie Mac’s economists have revised many of their earlier
estimates for the 2015 U.S. economy. In
terms of overall economic growth the revisions are not positive as they see a
slowing of “the torrid pace in the third quarter of 2014,” but their new
projections are good news for housing, with lower rates and a higher level of
Leonard Kiefer, Freddie Mac’s Deputy Chief Economist, said
in February’s edition of the U.S.
Economic & Housing Outlook, that there is considerable tension in
interest rates. While it is expected
that the Federal Reserve will begin raising short-term rates this year, the
prevailing theory is between mid-year and the third quarter, long term rates
have fallen from their peaks in 2014.
Ten-year Treasuries have declined by about ½ percentage point since
October, twice reaching as low as 1.68 percent, the lowest rate since 2012.