Freddie Says Housing Will Help to Stop Recession, Here’s How

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Posted To: MND NewsWire

Housing led the way into the last recession, now Freddie Mac’s economists are suggesting it might help stave off the next one or at least modify its severity. In its August Forecast , the company says a deteriorating global economy and on-going US trade disputes with multiple countries has led to a drop in long-term interest rates to a three-year low and has “poised housing to reaccelerate.” The report says to expect a significant increase in refinance originations and the combination of low rates, a tight labor market and strong consumer confidence to offset declining business sentiment. “These factors will set the stage for continued improvement in the housing market heading into the fall.” But economic growth will slow. With the effects of tax cuts and fiscal stimulus that stoked growth…(read more)

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