Skip to main content

Freddie Mac: Weak Economy is Dragging Housing

Dec 23, 2014

In a blunt observation on the connection between housing and the general economy, Freddie Mac Chief Economist Frank Nothaft harshly stated that the current level of household income and the overall employment picture need to show greater strength in order to fuel a more secure housing recovery.

Nothaft tried to maintain a positive spin on the current situation, although he was clear that the situation was far from copasetic.

“When we look at the stability of the housing market we've seen a modest 0.5 percent improvement since the beginning of the year in the national index,” Nothaft said. “Housing markets continue to heal across the country with those hardest hit showing the biggest improvement. Low mortgage rates have helped, but we also need better household income growth. The employment picture needs to improve more to strengthen wage growth. The good news is we're slowly starting to see this happen in areas like Denver, San Jose, Nashville and Pittsburgh to name a few, where we're also seeing better purchase application activity on a monthly basis.”

Nothaft’s comments come a week after Freddie Mac announced that the average fixed mortgage rates fell to new lows for this year. His new remarks were presented along with Freddie Mac’s latest Multi-Indicator Market Index report, which identified the country as having a “weak housing market overall,” albeit one that has shown improvement on a year-over-year basis.

About the author
Published
Dec 23, 2014
Broker Action Coalition Unveils Inaugural Board Of Directors

Newly formed nonprofit organization BAC announces industry professionals to guide its mission of legislative change and educational initiatives in the mortgage industry.

Feb 21, 2024
GSEs Report Strong Earnings

Robust performance marks growth for both Fannie Mae and Freddie Mac, despite a dip in home purchases.

Feb 15, 2024
Friendly Competition Joins Forces

The merger aims to enhance local fulfillment and sales support, marking Guild’s sixth acquisition since 2021 and expanding its licensed originators to over 2,100 amidst a challenging market.

Feb 14, 2024
Guild Mortgage Announces Acquisition Of Competitor Academy Mortgage, Bolsters National Presence

The strategic move will see Guild Mortgage enhance its market share and become the 8th largest non-bank retail lender in the U.S., welcoming over 600 loan officers from Academy.

Feb 13, 2024
Proprietary Capital-Led Group Acquires Multichannel Lender AFR

Colorado-based fund manager Proprietary Capital finalizes acquisition of American Financial Resources.

Feb 13, 2024
Are Trigger Leads Harmful? Prove it

Trade associations claim trigger leads are dangerous to consumers.

Feb 08, 2024