Freddie Mac Releases May 2011 U.S. Economic & Housing Market Outlook

Date Published 5/12/2011
Country United States

On May 11, Freddie Mac released its  May 2011 U.S. Economic and Housing Market Outlook 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.
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