Inching Along For Most Sectors, Except For Real Estate

With the overall economy just inching along, some experts are questioning whether the housing market can continue its momentum throughout the rest of the year.

Maybe, you're asking some of these questions:

• Will disappointing economic news adversely impact housing?

• Is affordability a major concern in today's market?

• Are we approaching a new housing bubble?

• Are mortgage standards too tight or too loose?

In the April Economic Outlook, Freddie Mac addresses the dampened economic news and what impact they think it will have on housing:

Recent data darkened the growth outlook for the first quarter of 2016. However, despite the disappointing economic reports, we still forecast housing to maintain its momentum in 2016. We've revised down our forecast for economic growth to reflect the recent data for the first quarter, but our outlook for the balance of the year remains modestly optimistic for the economy.

Yes, Freddie Mac is optimistic about housing …

We maintain our positive view on housing. In fact, the declines in long-term interest rates that accompanied much of the recent news should increase mortgage market activity.

They reached this conclusion:

We expect housing to be an engine of growth. Construction activity will pick up as we enter the spring and summer months, and rising home values will bolster consumers and help support renewed confidence in the remaining months of this year.

So, although other sectors of the economy may be inching along, real estate continues to be steaming along with solid support.

Contact Skyrise Real Estate Group today for help in making the right real estate choices. All aboard!

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