This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Uncertainty Rattles Financial Markets According To Fannie Mae's Economics & Mortgage Market Analysis Group

WASHINGTON, June 17 /PRNewswire-FirstCall/ -- Concerns about European sovereign debt and ensuing international financial market volatility are pushing capital markets to a flight to quality according to the June 2010 Economic Outlook released today by Fannie Mae's (NYSE: FNM) Economics & Mortgage Market Analysis Group. A resulting decline in U.S. Treasury yields has helped bring mortgage rates to historic lows and opened a window for mortgage refinancing activity, however rates will need to move closer to 4.5 percent in order to sustain the recent surge. Consumer spending slowed recently but is expected to remain healthy and serve as the biggest driver of continued economic growth, buoyed by an increase in personal income and falling oil prices which should free up cash for consumers and contribute to sustainable consumer consumption.  

"We continue to project modest economic growth for 2010, despite various risks," said Fannie Mae Chief Economist Doug Duncan. "On the downside, private sector payrolls disappointed and our housing outlook was clouded by a precipitous drop in purchase applications. Clearly, housing still faces headwinds but housing starts are expected to increase slightly by year end," said Duncan. "On the upside, employment is growing, which is a key indicator of economic growth and stability. The average workweek lengthened to 34.2 hours, increased corporate profits point to strength in near-term hiring, and small businesses' confidence rose in May with indications of positive plans for hiring during the next three months."

For an audio synopsis of the June 2010 Economic Outlook, listen to the new Economic Outlook podcast on the Economics & Mortgage Market Analysis site at Visit the site to read the full June 2010 Economic Outlook, including the Economic Developments commentary, Economic Forecast, and Housing Forecast.

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

Copyright 2009 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $118.48 0.57%
FB $104.25 -1.10%
GOOG $743.96 -0.84%
TSLA $230.35 -0.54%
YHOO $33.81 2.60%


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,082.71 -7.40 -0.35%
NASDAQ 5,113.1360 -14.3890 -0.28%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs