[Chart] FHA mortgage insurance boom in the works?

[Chart] FHA mortgage insurance boom in the works?

MBA notes impact of cutting MIPs

loanDepot officially files for IPO

Number of shares, price range to be determined

Did Sen. Corker violate SEC rules, Senate ethics by telling investors to short GSEs?

Made questionable remarks on CNBC regarding stocks

Threat of downturn derails housing recovery: Fannie Mae

/ Print / Reprints /
| Share More
/ Text Size+
The threat of another economic downturn is stalling a housing recovery, Fannie Mae said in a report Monday. The economy remains in a fragile state and is highly susceptible to additional shocks that could further erode economic growth, according to a study provided by the government-sponsored enterprise's Economics & Mortgage Market Analysis group. Fannie pointed to a stubborn unemployment rate that's expected to remain above 9% throughout 2012, making individuals more likely to become renters than homeowners. "The weakening economic backdrop, a persistently high unemployment rate, and fear of a double-dip recession are casting a shadow over the housing market," Fannie Mae Chief Economist Doug Duncan said. "In turn, respondents to the Fannie Mae National Housing Survey indicate a continued shift of sentiment toward renting and away from ownership, at least in the near term." "In the second quarter, 26% of Americans were worried about their job stability. When combined with the 9% of unemployed households, you have more than one-third of the potential workforce worried about their employment status. This is hardly a strong support for housing demand," he said. Duncan's latest statement comes as Fannie Mae economists predict slugglish GDP growth of less than 2% throughout 2012. Existing-home sales fell in July along with single-family construction spending, while multifamily construction spending began to rise after attracting the attention of large investors, Duncan said. Write to: Kerri Panchuk.

Recent Articles by Kerri Panchuk

Comments powered by Disqus