Freddie Mac Expects Housing Market to Rebound in 2011

By Kyle Chezum Updated on 12/6/2010

12/06/2010

Freddie Mac chief economist Frank Nothaft said on Monday that he expects the housing market to experience a rebound in 2011.  The rebound will be linked to overall economic recovery, he says, as well as low mortgage rates and low home prices.  Home price indexes for the nation are “close to bottoming out," he said.

The housing market has already seen a sharp decrease in home refinances, signaling that rates and prices may be starting to level off.  This may push home purchase opportunities to the foreground and help spark additional recovery.  Some analysts, however, are predicting that home prices will continue to decrease throughout 2011 and the first months of 2012.  Time will tell.  Nevertheless, Nothaft expects that 2011 will bring more home sales than 2010.

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