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In just a few weeks, 2014 will be ending and a lot have been wondering as to where the economy is going next year including Freddie Mac’s chief economist and deputy chief economist Frank Nothaft and Len Kiefer.
According to the company’s latest Economic and Housing Market Outlook for the United States, both analysts claim that the market for home purchase mortgages will continue to strengthen especially as the country’s economy improves. This year was certainly a mixed year for the housing market compared to 2013.
The economists foresee a growth rate of 3 percent for the gross domestic product (GDP) in 2015, which marks the second time within the past decade that the GDP has increased 3 percent or higher.
Apart from this, Nothaft and Kiefer have 4 other predictions for the following year:
“Government fiscal drag has turned into fiscal stimulus, lower energy costs support consumer spending and business investment, further easing of credit conditions for business and real estate lending support commerce and development, and more upbeat consumer and business confidence, all of which portend faster economic growth in 2015. And with that, the economy will produce more and better paying jobs, providing the financial wherewithal to support household formations and housing activity,” Nothaft said regarding the forecast.