Sunday, April 4, 2010
The US labor market continues to be weak, indicates the jobs report released by the nation's Department of Labor on Friday. The employers have added 162,000 jobs in March and this is the largest gain since 2007. However, about 48,000 of them were temporary positions working for the Census. The unemployment rate held steady at 9.7 percent.
People without jobs don't buy houses, and some of the unemployed will be unable to pay their mortgages. This situation would have a serious impact on the housing market. According to the Mortgage Bankers Association's quarterly survey, the early-stage mortgage delinquencies may have already peaked. This is in fact a good sign. On the other hand, the pool of seriously delinquent loans continues to grow.
"Because of foreclosure moratoria, judicial backlogs, and [modification] trial periods, many loans are languishing either in late-stage delinquency or in the foreclosure process and could add to [bank-owned] inventories in the coming year", warns Freddie Mac Chief Economist Frank Nothaft. But he is being optimistic at the same time.
People without jobs don't buy houses, and some of the unemployed will be unable to pay their mortgages. This situation would have a serious impact on the housing market. According to the Mortgage Bankers Association's quarterly survey, the early-stage mortgage delinquencies may have already peaked. This is in fact a good sign. On the other hand, the pool of seriously delinquent loans continues to grow.
"Because of foreclosure moratoria, judicial backlogs, and [modification] trial periods, many loans are languishing either in late-stage delinquency or in the foreclosure process and could add to [bank-owned] inventories in the coming year", warns Freddie Mac Chief Economist Frank Nothaft. But he is being optimistic at the same time.
Bookmark &
Share
posted by Real Estate Investing @ 9:53 PM
permanent link | Post a Comment |
Real Estate Investment News
0 Comments:
Post a Comment
<< Real Estate Investment