Freddie Mac Means What for Louisville?

Last August Freddie Mac issued its press release on the Economic & Housing Market Outlook.

The outlook highlights:

  • Employment has risen 117,000, which is the best it has been since April 2011. The unemployment rate decreased a tenth to 9.1%.
  • In the first half of 2011, economic growth was figured to be about 0.8%at an annual rate, which is still too weak to create jobs to stay up with the growth of the growing labor force.
  • Comparable to the first quarter of 2008, borrowers are paying around $130 billion less in mortgage interest today.
  • The interest rates on 15-year fox-rate loans are always a good idea for buyers considering refinancing. It reached 3.5% in early August assuring the refinance boom continues.
  • Freddie Mac House Price Index for the U.S. shows that prices are down 25% on average,  as of June 2011 compared with its peak in 2006.

They predict a reasonable time frame in the future where interest rates will stay their current range. While home values have dropped 25% in the past 5 years, Louisville has actually gained 1.5%.

It's encouraging to know that employment has risen, but it needs to continue to do so along with the consumer confidence for the market to really have a good rebound. What is good for the country is good for Louisville, but on a smaller scale. Let the good news roll.

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