The housing market and economy are showing cautious signs of improvement, according to a February 22 Economic and Housing Market Outlook from mortgage capital lender Freddie Mac.

As job prospects for Americans continue to improve - the Bureau of Labor Statistics recently announced that the unemployment rate fell to 8.3 percent in January - so too does the economy, according to Freddie Mac. Although consumer confidence lagged in recent months, homebuilders have been feeling more optimistic.

Sustained low interest rates have loosened the housing market some, but bigger gains can be expected during 2013, the February Outlook shows. Homebuyers will continue to see affordable housing prices through the year, and homeowners will be better able to refinance upside-down mortgages, thanks to a recent legal settlement with big banks and new government programs.

"The U.S. economy continues to build on the momentum from the end of last year," according to Frank Nothaft, Freddie Mac vice president and chief economist at Freddie Mac. "Our outlook anticipates gradual, but steady, improvement in the economy and the housing market, supported by low interest rates and brightening job market prospects."

More good housing news emerged from the National Association of Realtors on February 22. The industry group found that sales of existing homes increased 4.3 percent in January.

 

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