Mclean - UPI
The U.S. housing market, aided by a recovering rental sector, is unlikely to experience a "double-dip" setback, Freddie Mac said Monday. In its U.S. Economic and Housing Market Outlook for July, the Federal Home Loan Mortgage Corp. said housing likely will follow the performance of the overall economy for the rest of 2011. Additionally, home sales are projected to be above last year's numbers by 3- to 5 percent. The report also indicated that despite record levels of home buyer affordability and historically low mortgage rates, households were concerned about their financial futures and were holding off making major purchases, notably homes. The rental housing market showed the clearest signs of a turnaround with the apartment property price index showing a 15.2 percent gain over the year through the first quarter of 2011. "Following June's labor market report, households are naturally concerned about their financial futures which is being reflected in the housing market," said Frank Nothaft, Freddie Mac's vice president and chief economist. "Yet, the single-family market will likely improve over the balance of 2011, in keeping with positive [gross domestic product] forecasts for the United States."