Freddie Mac’s April Economic Outlook forecasts a boost in sales activity in the second quarter of 2011. After a slow winter, home sales will rebound due to the traditional seasonal uptick, low mortgage rates, and prices below their peak. Homebuyer affordability is at its highest level in at least 40 years and, with continued economic improvement and increases in sales contract signings, the housing market should experience a second quarter bump. Frank Nothaft, Freddie Mac’s chief economist, said sales comparisons with a year ago will understate growth, as last year’s data was influenced by the homebuyer tax credit. But, according to Nothaft, home sales should rise about five percent in 2011 compared with 2010. More here.
