Our housing market is poised for an increase in home sales during the traditional spring buying season, as employment improves and rates remain low, Freddie Mac said in its April 2011 economic outlook.
Overall, home sales should increase 5% in 2011 compared to 2010 — a projected 4.9 million home sales nationally. Freddie Mac estimates that number will rise 12.2% to 5.5 million homes sales in 2012.
The Federal Reserve’s current monetary policy and Treasury note purchase program are keeping rates low, according to Frank Nothaft, chief economist at the agency.
On a monthly comparative basis, homes sales are expected to be lower this month than April 2010 because sales last year were inflated by the first-time homebuyer tax credit, Nothaft said.
Short-term rates are especially supportive of household borrowing, Nothaft said, adding that he expects adjustable-rate loans to account for 7% of all 2011 sales. This is up from 5% in 2010.
Source: HousingWire
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