Mortgage rates will likely remain very low, at least through mid-2012, according to Freddie Mac. Rates on 30-year conforming mortgages have hovered around 4.0% or lower for the past quarter. Freddie Mac also said in its outlook forecast that housing activity will be better in 2012, but not robust.
Looking at the macroeconomic picture, Freddie expects stronger growth, in the range of 2.5% in 2012. “While the headwinds remain strong going into 2012, there are indications the economy and the housing market are gaining ground, albeit slowly,” commented Frank Nothaft, Freddie Mac’s chief economist.