July 2012 U.S. Economic and Housing Market Outlook

MCLEAN, Va., July 18, 2012 /PRNewswire/ -- Freddie Mac (OTC: FMCC) released today its U.S. Economic and Housing Market Outlook for July showing that while the construction industry continues to struggle on the jobs front, data suggests this sector is ready to get back to work. 

Outlook Highlights                                                                         

• The unemployment rate for construction workers was 12.8 percent in June with nearly 48 percent out of work for at least six months, both metrics well above the national figure.
• Over the past 12 months overall payroll employment across all industries was up 1.8 million, yet construction employment was up a mere 13,000, well below the sector's share of total employment (about 4.3 percent).
• Regardless, hiring in the construction sector has increased on a year-over-year basis, and the unemployment rate for construction workers has fallen 2.8 percentage points since June 2011.
• A gradual strengthening of economic growth in the second half of 2012 should rebuild job growth back to an average monthly pace of 150,000.
• Expect fixed mortgage rates to remain at or near their historic lows fueling housing demand with a continued pick-up in housing starts, home sales, and even house prices in many markets.

Watch a short preview video and download the complete July 2012 U.S. Economic and Housing Market Outlook. Freddie Mac compiles data on major economic and housing and mortgage market indicators and offers forecasts based on those indicators.

Quotes
Attributed to Frank Nothaft, Freddie Mac, vice president and chief economist.

• "While housing may not have played its traditional role coming out of the Great Recession, at the end of the day, it has turned a very large corner and now it's time to get this sector back to work whether through construction jobs, remodeling, or home brokerage."

Get the latest information from Freddie Mac's Office of the Chief Economist on Twitter:@FreddieMac

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four homebuyers and is one of the largest sources of financing for multifamily housing. www.FreddieMac.com.

SOURCE Freddie Mac

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