Unemployment Rates Drop in Washington, D.C area, still problem with Housing

Just to add a few more notes to my last week article on nationwide unemployment rates, it looks like the economy is definitely making turns for the better, as markets open up more, and good reports come out.  When you look at the economy more closely into specific markets, then you may get a slightly different picture.

Washington D.C. area including Maryland and Virginia saw a drop in their unemployment rates.

May 2010 Jobless Rate
April 2010 Jobless Rate Month-to-Month Change Year-to-Year Change
Awesome Washington, DC 10.4% 11.0% 0.6 0.7
Maryland 7.2% 7.5% -0.3 0.2
Virginia 7.1% 7.2% -0.1 0.3

This is a good signal for how well the job market is regaining jobs and creating new ones in this region of the country.  In fact, this was the second consecutive month that all three

The number of jobs being added in all three states does look promising.  Thousands of jobs in various sectors are being created each month within this region giving hope to many that they may find a suitable job soon. I just wish there more in private sector than Federal government.

While the unemployment rate may be dropping in certain regions of the United States, the housing market on the other hand still has problems. Freddie Mac and Fannie Mae were originally founded to help Americans buy homes, and have lower interest rates.  It now seems however, that the two companies have become the biggest landlord’s in the U.S.

Freddie Mac and Fannie Mae owned 163,828 homes near the end of March.  In a staggering number, the companies took a newly foreclosed home once every 90 seconds during the first quarter of the year.  Now the companies are having a hard time finding new buyers.

The government is also taking issues with the companies.  In fears that investors would stop giving loans, the federal government bought 79.9% of the companies’ shares, and backed every loan that they took.  Republicans want to cut all ties to the companies, but Obama and Democrats, are insisting that the issue wait until after midterm elections.

The houses are being sold for well under their real values, so it is not really helping the housing market recover at a decent rate.  It’s everyone’s hopes that the number of foreclosed houses the companies acquire will drop, so the housing market as a whole will begin recovering quicker.

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About Elias Shams
I have been a serial entrepreneur in telecom and social media space for past 12 years or so. I hold a M.S. degree in Telecommunication Engineering from the George Washington University and a B.S. degree in Electrical Engineering from the University of Maryland. I’ve lived and worked in many countries and cities including London England, Tehran Iran, Bonn Germany, Paris France, Alicante Spain, Delhi India, and my favorite of all Washington, DC of great US of A. Two of the greatest Washington, DC based companies I worked for and very proud of are Yurie Systems which was sold to Lucent in 1998 for $1.23 B and telezoo.com that I founded in 1999. I am currently the founder and awesomizer @ awesomize.me

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