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Freddie Cautiously Optimistic as Housing Market Shows Resilience; Mortgage Bonds Got Too Strong

Freddie Cautiously Optimistic as Housing Market Shows Resilience; Mortgage Bonds Got Too Strong

Freddie Mac's Quarterly Forecast is more upbeat than one might expect . While it acknowledges that, with big chunks of the U.S. economy currently in lockdown the housing market faces "its greatest challenge in over a decade," it seems to assume its duration could perhaps be limited, with the recovery starting in the third quarter of the year. It does hedge this, admitting that the contours of the pandemic and thus the recovery from it seem to vary from country to country so forecasting is even more uncertain than usual. Even if the recovery does take off, with most of the damage contained in the first half of this year, it will probably take another year for things to return to normal. Freddie Mac's Economic and Housing Research Group says that due to the stay-at-home orders in effect in more
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