May 2011 U. S. Economic and Housing Market Outlook
Better, But Still Not Good Enough
MCLEAN, Va., May 11, 2011 /PRNewswire via COMTEX/ -- Freddie Mac (FMCC) released
today its U.S. Economic and Housing Market Outlook for May showing a pick-up in
economic growth in the second half of 2011 but with unemployment lingering above
8 percent through year-end. A large number of workers unemployed for a long
period remains the predominant force behind seriously delinquent rates on
mortgages.
Outlook Highlights
Over 250,000 new jobs needed monthly, on a sustained basis, to reabsorb all the
jobs lost since the recession.
Unemployment rate moves up to 9 percent; average unemployment duration was 38.3
weeks in April, down slightly from the record of 39 weeks in March.
The rate of seriously delinquent mortgages (8.6 percent average) will likely
trend lower during 2011, but continue to remain at extraordinarily high levels
for an extended period.
During the first quarter of 2011, home prices decreased by 2.8 percent
nationwide.
Positive signs: homebuyer affordability remains extraordinarily high, mortgage
rates low, house prices are well off their cyclic peak and contract signings for
existing home sales are up.
Projecting a 5 percent increase in 2011 home sales over 2010, on a calendar year
basis.
Click here to view the complete May 2011 U.S. Economic and Housing Market
Outlook. Freddie Mac compiles data on major economic and housing and mortgage
market indicators and offers forecasts based on those indicators.
Quotes
Attributed to Frank Nothaft, Freddie Mac, vice president and chief economist.
"While the labor market is moving in the right direction, it still has a long way
to go before the unemployment rate moves sharply lower. And ditto for seriously
delinquent rates on mortgages."
Get the latest information from Freddie Mac's Office of the Chief Economist on
Twitter: @FreddieMac
Freddie Mac was established by Congress in 1970 to provide liquidity, stability
and affordability to the nation's residential mortgage markets. Freddie Mac
supports communities across the nation by providing mortgage capital to lenders.
Over the years, Freddie Mac has made home possible for one in six homebuyers and
more than five million renters.
SOURCE Freddie Mac
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