Skip to Page Content | Skip to Site Navigation | Skip to Section Navigation

Demand Drivers

April 2014 U.S. Economic and Housing Market Outlook

MCLEAN, VA--(Marketwired - Apr 17, 2014) - Freddie Mac (OTCQB: FMCC) released today its U.S. Economic and Housing Market Outlook for April, showing that recent data on the housing market continues to be noisy and giving mixed signals heading into the spring home buying. A short preview video and the complete April 2014 U.S. Economic and Housing Market Outlook are available here.

Outlook Highlights

  • Projecting new home construction to increase by 18 percent, and house price appreciation moderating to an annual growth of 5 percent in 2014.
  • Lowering home sales projection from 5.6 million to 5.5 for 2014 primarily due to a slower than normal first two months of the year, which has resulted in a 4 percent reduction in annual originations.
  • The housing market is being helped by an improving local employment picture. All 50 states saw declining unemployment rates, with 18 states experiencing at least a half percentage point reduction in their unemployment rate over the previous three months ending in February.
  • Following the spike in interest rates last summer consumer confidence had dipped a bit, but it is now tracking higher and in March was at the highest level since January 2008.
  • Expect the the 30-year fixed-rate mortgage to continue its path of gradually rising higher and ending the year around 5 percent.

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

"We're getting mixed signals as we start the spring home buying season. Tight inventory may pose a significant challenge for home buyers in many markets across the country, which may result in higher home prices and sales being lower than expected. This is good news for those markets that have room to run on the house price appreciation front, but it's also going to increase the affordability pinch in many markets, especially along the country's east and west coasts. Two indicators that are supporting local housing activity are rising consumer confidence and declining unemployment rates."

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is one of the largest sources of financing for multifamily housing. Additional information is available at, Twitter @FreddieMac and Freddie Mac's blog


The financial and other information contained in the documents that may be accessed on this page speaks only as of the date of those documents. The information could be out of date and no longer accurate. Freddie Mac does not undertake an obligation, and disclaims any duty, to update any of the information in those documents. Freddie Mac's future performance, including financial performance, is subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect the company's future results are discussed more fully in our reports filed with the SEC.

Print Email RSS            

Get RSS Feed

Sign Up For Email Alerts

Media Contact

For press inquiries only:

(703) 903-3933

Non-press inquiries

Financial Results

CEO Don Layton discusses our second quarter 2016 financial results with the media.

Moving Housing Forward

See how our commitment to you and the nation is moving housing forward.

A Better Housing Finance System
We're leading the market with our innovative credit risk transfers.
Watch our video

Search News Room

Back to Top