MEDIA RELEASE PR41823
Weak Second-Half Growth Expected to Carry Into 2011, According to Fannie Mae's Economics & Mortgage
Market Analysis Group
WASHINGTON, Oct. 21 /PRNewswire-AsiaNet/ --
Uncertainty Hangs over Economy, Housing
New Article on Homeownership and Rental Attitudes Available
Sluggish job creation and modest consumer spending continue to spur slow economic growth according to the
October 2010 Economic Outlook released today by Fannie Mae's (OTC Bulletin Board: FNMA) Economics &
Mortgage Market Analysis Group. The economy is expected to grow at a rate below two percent in the current
quarter before picking up modestly in the first half of 2011 and strengthening in the second half of next year. The
current outlook remains clouded with uncertainty and has not changed materially from the previous forecast, with
2.2 percent growth projected for all of 2010, followed by a 2.5 percent pace for 2011.
"The labor market has yet to make significant progress, which is the primary reason for our continued weak
growth forecast," said Fannie Mae Chief Economist Doug Duncan. "With economic growth slowing, job creation
also has been tepid, keeping the unemployment rate high. Housing sales will likely be soft until the labor market
strengthens."
For an audio synopsis of the October 2010 Economic Outlook, listen to the podcast on the Economics &
Mortgage Market Analysis (
s
Economic Developments Commentary, Economic Forecast, and Housing Forecast.
New this month and available via link from the Economic Developments Commentary is an article by Doug
Duncan on current attitudes and expectations for homeownership and renting based on results from the Fannie
Mae National Housing Survey.
Opinions, analyses, estimates, forecasts, and other views of Fannie Mae's Economics & Mortgage Market
Analysis (EMMA) group included in these materials should not be construed as indicating Fannie Mae's business
prospects or expected results, are based on a number of assumptions, and are subject to change without notice.
How this information affects Fannie Mae will depend on many factors. Although the EMMA group bases its
opinions, analyses, estimates, forecasts, and other views on information it considers reliable, it does not guarantee
that the information provided in these materials is accurate, current, or suitable for any particular purpose. Changes
in the assumptions or the information underlying these views could produce materially different results. The
analyses, opinions, estimates, forecasts, and other views published by the EMMA group represent the views of that
group as of the date indicated and do not necessarily represent the views of Fannie Mae or its management.
Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve
the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market
to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that
they may lend to home buyers. Our job is to help those who house America.
SOURCE: Fannie Mae
CONTACT: Pete Bakel,
+1-202-752-2034
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