Dive Brief:
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The housing recovery will continue at its snail’s pace until young, would-be homeowners are able to find better jobs, mortgage loans become easier to qualify for, and economic growth is more consistent, David Crowe, chief economist for the National Association of Home Builders, wrote in BUILDER magazine.
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That will start to happen in 2015, he wrote, noting that the housing economy started the year at a disadvantage when construction stalled during an especially cold, snowy winter over much of the country, and then never picked up much steam.
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While housing starts—including single-family homes and multifamily buildings—will improve from 2013 levels by 7% by the end of the year, the housing rebound has been “the slowest growth of the recovery,” Crowe wrote.
Dive Insight:
Still, Crowe, who has for months delivered a consistently positive 2015 forecast for housing, came back to that in his BUILDER commentary. He predicted low interest rates, positive employment growth, a slow but steady increase in home values and more lenient mortgage underwriting standards will combine to make homeownership more affordable for first-time buyers over the next year.