Wondering about the housing market in 2012? Here is an interesting little tid-bit from our friend Ron Witherton. He outlines what it will take for the housing market to take an up-swing this year.

“2012 began with mortgage rates hovering at 60-year lows, and many hopeful signs for the coming year. Housing continues to have challenges, but more and more signs are beginning to point toward a recovery. Could we see housing finally turn the corner in 2012? The biggest boost to housing would likely come from a more robust labor market. We ended the year with a sizeable 200,000 new jobs added, with slightly more than that added in the private sector, as governments shed 12,000 jobs. However, The Fed is not taking a wait-and-see approach to housing. The Fed sent a 26-page paper to lawmakers urging action in the housing market. Some potential actions include greater use of Freddie Mac and Fannie Mae, loosening of credit standards, and reductions in mortgage fees. This week will likely be dominated by the release of December’s retail sales data. If consumers felt more confident coming into the Christmas holiday, and opened their wallets a bit wider than expected, we could see stock markets rising, with a small increase in mortgage rates too.”

Ron Witherton, Axiom Financial