July 24th, 2012
The housing market recovery has taken another hit, as a report from Freddie Mac further downgraded the country's economic growth outlook for the second half of 2012, and this could affect relocation mortgage plans in some markets.
Freddie Mac projected that the total gross domestic product growth should finish at 2 percent for the year, which was lower than the previous expectation of 2.2 percent. However, the housing market has shown some progress, as home sales rose by nearly 10 percent in June compared to the same point in 2011.
"The data from the past month collectively point to decelerating economic growth, but growth nonetheless," said Doug Duncan, chief economist for Fannie Mae. "It's now clear that our bias toward downside risks noted in the June forecast have materialized, pushing down our already modest growth projections."
Continued growth issues in the housing market may encourage transferees to follow up with their mortgage consultant to make sure they receive a strong deal when buying a new property for their move.