bobbyw24
Banned
- Joined
- Sep 10, 2007
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Foreclosures to Rise Even More Next Year
Unemployment Expected to Climb, Also
By Alex Veiga
Associated Press
Saturday, October 17, 2009
Foreclosures will peak by the end of next year and unemployment will climb above 10 percent as the housing market and U.S. economy grapple with the aftermath of the recession, the Mortgage Bankers Association's chief economist said this week.
Jay Brinkmann's forecast, released Tuesday at the trade association's annual convention and expo in San Diego, envisions a slowly growing economy and improving housing market, with home price declines abating and fixed mortgage interest rates remaining below 6 percent.
But the strength of any rebound will hinge on whether consumers -- many still concerned about job security -- will ramp up spending, he said.
"The recession is behind us, but the effects of the recession will linger for some time in the form of higher unemployment and lower levels of business investment and home construction," he said.
Brinkmann projects that economic activity will slow again in the first half of next year but pick up in the second half. That won't be enough to slow unemployment, which is expected to peak at 10.2 percent by mid-2010 and not fall below 8 percent until late 2012.
During a panel session on Monday, Freddie Mac chief executive Charles Haldeman Jr. noted that the speed at which businesses are rehiring is lagging. Unemployment is the main reason homes are now being lost to foreclosure, as borrowers struggle without income and lenders are left with fewer options for reworking troubled loans.
Haldeman stressed that lenders' efforts to modify mortgages to help stave off foreclosure must continue, despite some signs this year that the housing market is stabilizing.
"I think it would be a real mistake for the industry to take some of the glimmers of hope that some might be pointing to in terms of housing prices and housing activity and reduce our efforts," he said.
Many lenders have issued a moratorium on foreclosures, causing a drop in the number of discounted, bank-owned properties hitting the market this year. But
http://www.washingtonpost.com/wp-dyn/content/article/2009/10/16/AR2009101600025.html
Unemployment Expected to Climb, Also
By Alex Veiga
Associated Press
Saturday, October 17, 2009
Foreclosures will peak by the end of next year and unemployment will climb above 10 percent as the housing market and U.S. economy grapple with the aftermath of the recession, the Mortgage Bankers Association's chief economist said this week.
Jay Brinkmann's forecast, released Tuesday at the trade association's annual convention and expo in San Diego, envisions a slowly growing economy and improving housing market, with home price declines abating and fixed mortgage interest rates remaining below 6 percent.
But the strength of any rebound will hinge on whether consumers -- many still concerned about job security -- will ramp up spending, he said.
"The recession is behind us, but the effects of the recession will linger for some time in the form of higher unemployment and lower levels of business investment and home construction," he said.
Brinkmann projects that economic activity will slow again in the first half of next year but pick up in the second half. That won't be enough to slow unemployment, which is expected to peak at 10.2 percent by mid-2010 and not fall below 8 percent until late 2012.
During a panel session on Monday, Freddie Mac chief executive Charles Haldeman Jr. noted that the speed at which businesses are rehiring is lagging. Unemployment is the main reason homes are now being lost to foreclosure, as borrowers struggle without income and lenders are left with fewer options for reworking troubled loans.
Haldeman stressed that lenders' efforts to modify mortgages to help stave off foreclosure must continue, despite some signs this year that the housing market is stabilizing.
"I think it would be a real mistake for the industry to take some of the glimmers of hope that some might be pointing to in terms of housing prices and housing activity and reduce our efforts," he said.
Many lenders have issued a moratorium on foreclosures, causing a drop in the number of discounted, bank-owned properties hitting the market this year. But
http://www.washingtonpost.com/wp-dyn/content/article/2009/10/16/AR2009101600025.html
I am so tired of hearing this shit. So the economy is improving, but things are going to get worse. Great, that really clears it up for me. /sarcasm
