Freddie Mac (OTC: FMCC) released its U.S. Economic and Housing Market Outlook for February showing that while the housing sector is recovering, the level of housing activity is still near historic lows. And in many markets, especially those hardest hit, there is room for sustainable growth because of record high homebuyer affordability; a factor of relatively low house prices, mortgage rates and modestly rising income.

Attributed to Frank Nothaft, Freddie Mac vice president and chief economist.

"Across the nation, most local housing markets have room for sustainable growth, particularly in home construction and sales. As the broader economy heals, expect to see more good news with house prices continuing their recent upward trend, and home sales and housing starts continuing to post strong growth rates. The macroeconomic recovery though 2011 helped to forestall further erosion in the depressed housing market. In return, housing is now 'showing some love' by contributing to economic growth, perhaps by adding close to 0.5 percentage points to 2013 GDP growth."