Freddie: Volumes Will Inch Up

Freddie Mac chief economist Frank Nothaft has predicted a slight growth in the mortgage market for 2003, with originations of $2.54 billion.This is slightly ahead of Freddie Mac's 2002 call for the origination market of $2.51 trillion. "Despite a weather-induced dip in housing activity in February, housing starts and home sales appear to have remained brisk during the first quarter. Mortgage rates continue to hover near 40-year lows, which helps to propel the housing market and should set the stage for a robust spring buying season. With low rates and a pick-up in economic growth in the second half of 2003, home sales are expected to break last year's record pace, helping to contribute to the economy's recovery," Mr. Nothaft said. The weaker labor market, he said, increases the likelihood of the Federal Reserve Board further easing interest rates. Freddie Mac believes 30-year fixed rates will average 5.7% through the third quarter before gently rising. Freddie Mac's website address is http://www.freddiemac.com.