SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Freddie Mac (FRE) pops the housing bubble

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10PreviousNext  
From: mlkr7/21/2010 11:16:00 AM
   of 50
 
Growth Expectations Shifting Down According to Fannie Mae's Economics & Mortgage Market Analysis Group
Federal National Mortgage Association Common Stock (OTCBB:FNMA)
Intraday Stock Chart

Today : Wednesday 21 July 2010
Click Here for more Federal National Mortgage Association Common Stock Charts.

Concerns about the global economic recovery, including lingering worries regarding European sovereign debt, and increasing caution at home among private employers and consumers are evidence of the tenuous nature of the current economic recovery, according to the July 2010 Economic Outlook released today by Fannie Mae's (OTC Bulletin Board: FNMA) Economics & Mortgage Market Analysis Group. The group has revised its projected growth for 2010 to 2.8 percent from 3.2 percent, and remains on guard for a setback amidst increased uncertainty and downside risks.

"We have shifted into a lower gear in the economic expansion, due in no small part to the increase in financial-market volatility in recent months," said Fannie Mae Chief Economist Doug Duncan. "As a result, private-sector employers are tentative about hiring decisions; businesses are building cash, but generally are investing in capital rather than labor. That reluctance to hire has had a knock-on effect on consumers, who are spending less as the deleveraging process continues."

The headwinds in housing have also picked up, according to the group. Though the anticipated expiration of the homebuyer credit had led to forecasts of diminished activity in the third quarter, the fall off was steeper than expected. The group now expects housing sales in 2010 to be basically flat, though it expects a modest recovery for housing in the fourth quarter and into next year -- due in large part to the support that historically low mortgage rates are providing.

"We believe that residential investment will have a neutral effect on economic growth this year, which makes the current recovery quite unusual," Duncan said. "Housing has historically played a significant role in leading the country out of recession."
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10PreviousNext