Good year for housing

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single family home market, a rebound in the multifamily sector, and mortgage interest rates lingering at or below 7%,1994 will be a good year for housing.

Although 1993 was weaker than expected, housing starts and new home sales picked up during the second half. We expect that momentum to continue into 1994.

However, we don't expect any strong suge in economic activity. hstea4 the economy will move along at a growth rate of about 2.5% annually for the next couple of years, just enougb to gradudly redrce the nation's unemployment rate. Poor consumer confidence is one factor holding growth back. Indee( the job outlook is foremost on people's minds and, unfortunately, highly publicized plant closings and corporate layoffs continue. This job picture makespeople anxious about their own futures.

Forturately, continued low interest rates will help offset poor consumer confidence and support the economy's interest-sensitive sectors. Rates should stay at or below 79o on 30-year fixed-rate mtrtgages througb 1994.

Low mortgage rates will continue to allow unny people to move out of rental accommodations and into their fint homes. This Eend is one factu that wi[ fuel housing pro-