In an economic outlook from Mesirow Financial, chief economist Diane Swonk says, despite recent setbacks, there are enough positive indicators to expect a more significant housing recovery to begin to take hold later this year. In addition to high affordability factors and record-low mortgage rates, Swonk cites income growth, pent-up demand, and rebounding household wealth among the positive emerging trends in the housing market. She also notes that rent, in most major markets, has now exceeded the marginal costs of homeownership, which should help housing recover. But despite her hope for housing’s long-term future, Swonk expects improvements to be rocky, and gradual, in the near-term. More here.

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