According to Freddie Mac’s chief economist, Frank Nothaft, 2014 should shape up to be better than 2013. Nothaft, in a recent article, said there’s reason to be optimistic about both the economy and the housing market. Economic growth, for example, is expect to be between 2.5 and 3.0 percent in the new year, more than 0.5 percent better than 2013. The accelerated growth will lead to continued improvement in the job market, which should push the unemployment rate below 7 percent by mid-year. Single-family home sales and housing starts will both rise to their highest level since 2007 and – despite rising mortgage rates – housing will remain generally affordable across the majority of the country. For-sale inventory, on the other hand, will be tight throughout the year due to the number of potential sellers constricted by negative equity. Home prices, however, will continue to rise, relieving underwater homeowners and helping to support higher home sales. According to Nothaft, both home prices and sales will come in around 5 percent higher than they were in 2013. More here.