The good news keeps coming!!!
From various perspective, we continue to see news headlines of the improving economic market.
The key question is when will the public begin to respond to the news???
Historically high unemployment seems to be the biggest psychological hurdle at this time. Though
over 90% of people are employed and unemployment hovers in 6% percent range in many areas
and excessively high in others, the entire country seems bowed to this dilemna.
Yet, the 90% employed and even the unemployed need to be bouyed by announcements of a poll of
large U.S. companies that plan to hire over 100,000 people in the next year. This number will not
resolve unemployment but does solidify the employment picture.
As can be expected, good financial news have put pressure on mortgage rates; improved financial
markets require all loan instruments to offer a higher interest value to investors to compete with
other investment avenues. Thus, mortgage rates have ticked up to 4 5/8 to 5% range lately.
This is historically still an awesome rate but shows the trend moving higher!
Economic Growth Poised to Kick into Higher Gear by Second Quarter of 2011, According to Fannie Mae’s Economics and Mortgage Market Analysis Group
RISMEDIA, December 22, 2010—Improvements in consumer spending and consumer confidence, increased demand for goods and services, and falling unemployment claims are all positive factors for a brighter outlook as we move into 2011, according to the December 2010 Economic Outlook released by Fannie Mae’s Economics & Mortgage Market Analysis Group. Downside risks still exist, however, including a weaker than expected employment report, the ongoing economic turmoil in Europe, and potential inflation problems in China.
For 2011, forecasted growth was upgraded from 2.9% to 3.4% based on the positives in the recent reports. The forecast anticipates improving labor market conditions, despite the huge disappointment from the November employment report. The housing recovery should gain momentum going into 2011 if the expected stronger labor market materializes.
“Despite rising mortgage rates, our forecast for home sales is stronger than the previous forecast, given our brighter economic growth and labor market outlook,” said Fannie Mae chief economist Doug Duncan. “We expect modest increases in home sales, despite recent interest rate rises, due in part to modest additional declines in home prices, and we expect people to take advantage of affordability as their employment and income outlook brightens.”
For more information, visit www.fanniemae.com.
No comments:
Post a Comment