Freddie Mac released today its U.S. Economic and Housing Market Outlook for March showing signs the housing market is awakening from its depression-like condition of the past few years and beginning, though slowly, to make a nascent recovery.

Outlook Highlights                                                                         

• Stronger economic growth this year will translate into a further reduction in the unemployment rate below 8.3 percent.
• With stronger economic growth, home sales and originations forecasts have been revised upward.
• Expect 30-year fixed-rate mortgages to gradually increase throughout the year to about 4.5 percent.
• New rental construction for 2012 is likely to be the highest since 2005 if the current pace is maintained.
• Even with a 1 percent dip in new and existing homes sales in February, median sales prices moved up 0.3 percent on a year-over-year basis, a hint that home values may be stabilizing in more markets around the nation.

Click here to view the complete March 2012 U.S. Economic and Housing Market Outlook. Freddie Mac compiles data on major economic and housing and mortgage market indicators and offers forecasts based on those indicators.

Quotes

Attributed to Frank Nothaft, Freddie Mac, vice president and chief economist.

• "The housing market continues to struggle amid strong economic headwinds. However, a variety of encouraging indicators suggest that the housing market may be feeling a nascent recovery, and more neighborhoods may see a stabilization in overall demand and housing values this spring."

Get the latest information from Freddie Mac's Office of the Chief Economist on Twitter: @FreddieMac