Freddie Mac 2015 Annual Report Download - page 15

Management's Discussion and Analysis Key Economic Indicators | Unemployment Rate
Freddie Mac 2015 Form 10-K 13
UNEMPLOYMENT RATE
UNEMPLOYMENT RATE AND JOB
CREATION
Source: U.S. Bureau of Labor Statistics
EFFECT ON FINANCIAL RESULTS
• Changes in the unemployment rate can
affect several market factors, including the
demand for both single-family and
multifamily housing and the level of loan
delinquencies.
• Increases in the unemployment rate typically
result in higher levels of delinquencies,
which often result in an increase in expected
credit losses on our total mortgage portfolio.
• Decreases in the unemployment rate
typically result in lower levels of
delinquencies, which often result in a
decrease in expected credit losses on our
total mortgage portfolio.
COMMENTARY
• Monthly net new job growth decreased during 2015, but remained above 200,000 per month on
average.
• The unemployment rate continued to decline from the peak of 10.0% reached in October 2009.
• We expect the unemployment rate to decline slightly throughout 2016 and 2017.