U.s. Housing market needs government boost, analyst says

Moody's Analytics's(MCO) chief economist, Mark Zandi, says it's time to stop fooling around with the housing market and take some aggressive -- and historical -- steps to keep Americans in their homes. He's got three big ideas for the federal government to put into place, and they're worth a closer look.

The U.S. housing market did show some signs of growth in the past month, as data from Freddie Mac released July 18 show the housing market probably won't experience a double dip as some economists have suggested. Home sales, the agency says, should rise by 3% to 5% this year compared with last year.

"The single-family market will likely improve over the balance of 2011, in keeping with positive GDP forecasts for the United States," says Frank Nothaft, Freddie Mac's vice president and chief economist.

But Zandi says there's always room for improvement, and that goes double for a housing market striving to avoid that double dip. He recently wrote a report for Moody's that lays out a three-point plan to boost housing stability and put the market back on the road to recovery.

Source: NUWireInvestor.com