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Freddie’s Economic Revisions Optimistic for Housing

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
mortgage originations.

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.

 

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