Prospects for Employment Gains Improve According to Fannie Mae's Economic & Mortgage Market Analysis Group

Evidence of Economic Strength Continues; Housing Outlook Hopeful for 2010

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Feb 19, 2010, 09:30 ET

WASHINGTON, Feb. 19 /PRNewswire-FirstCall/ -- Economic growth continues at a moderate pace as noted in the February 2010 Economic Outlook released today by Fannie Mae's (NYSE: FNM) Economics & Mortgage Market Analysis Group. The labor market is improving gradually, with more than 500,000 household jobs created in January. The length of the workweek continues to rise from record lows in October 2009 and the number of part-time workers dropped dramatically -- the most comprehensive measure of unemployment and a good measure of labor market slack. There also is upside news in the January employment report which shows nonfarm payroll job losses steadily trending down since peak losses in January 2009.

"The upswing in employment data means positive news for economic growth. Better financial strength for households makes it easier for people to make mortgage payments and more likely that they'll buy homes," said Fannie Mae Chief Economist Doug Duncan. "Overall, we think economic growth will continue this year, but at a moderate pace compared to historical recovery standards. We also see reasons to be hopeful about the housing outlook in 2010, with homebuilding activity on its way toward posting an annual increase for the first time in five years."

The Economic Outlook includes the Economic Developments commentary, Economic Forecast, and Housing Forecast -- which detail movement of interest rates, the housing market, the mortgage market, and the overall economic climate. To read the full February 2010 Economic Outlook, visit the Economics & Mortgage Market Analysis site at www.fanniemae.com.

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. 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