Freddie Mac lists important economic trends that can affect the 2007 housing market. According to the January 2007 Economic Outlook, published by the Office of the Chief Economist at Freddie Mac, there are three trends that will impact the housing and financing market this year. The first trend predicts more homeowners’ looking to refinance their homes in 2007. The second trend includes the diversification of those refinancing products. The need for diversification comes after so many borrowers with low credit ratings sought non-traditional or “exotic mortgages” in order to buy a home that they may not have been able to qualify for otherwise. The 2007 adjusting rates may lead to more delinquencies which will result in more public scrutiny of these types of non-traditional products. Although housing market has begun to stabilize, prices are still high, and that makes it difficult for most to get into a new home. This leads to the third trend predicted by Freddie Mac, which is the lack of affordable housing.