Freddie Mac (OTC: FMCC) recently released its U.S. Economic and Housing Market Outlook for March showing signs the housing market is awakening from its depression-like condition of the past few years and beginning, though slowly, to make a nascent recovery.

The report showed that a stronger economic growth this year will translate into a further reduction in the unemployment rate below 8.3 percent.

With stronger economic growth, home sales and originations forecasts have been revised upward and we can expect 30-year fixed-rate mortgages to gradually increase throughout the year to about 4.5 percent.