Freddie Mac Releases May 2011 U.S. Economic & Housing Market Outlook
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.
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- Over 250,000 new jobs needed monthly, on a sustained basis, to reabsorb all the jobs lost since the recession.
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.
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.
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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