Pick Up In Housing Activity Accelerates Economic Recovery

Freddie Mac’s recently released Economic and Housing Market Outlook for October shows housing contributed 0.3 percentage points to GDP growth in the first half of 2012 after being a net drag from 2006 through 2010. The housing sector is also expected to contribute to growth during the second half of the year. Frank Nothaft, Freddie Mac’s vice president and chief economist, said the recovery has been unlike any other over the past 65 years but we are now seeing housing resume its traditional role of leading the charge. Also in the report, Freddie Mac projects 7 million borrowers will refinance their loans in 2012, resulting in $15 billion in mortgage-payment savings over the first year. That savings will help further boost the economy by strengthening homeowners’ financial situations and overall consumer confidence. More here.

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