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38 OBAMA FOCUSES ON JOBS, WAGES IN STATE OF THE UNION Anyone combing through President Obama's State of the Union address hoping for a hint on housing policy in the year ahead surely came away disappointed. In his recent speech, the president only directly mentioned housing twice: first to describe the market as "rebounding" and again to demand from Congress "legislation that protects the taxpayers from footing the bill for a housing crisis ever again." While the second might be seen as a nod toward legislative movements to abolish Fannie Mae and Freddie Mac, the topic wasn't explored any further. Instead, much of Obama's focus went toward addressing wage stagnation. While home prices have experienced a rapid rise over the last two years, household incomes have been slow to follow. Citing historically low minimum wages, the president called for Congress to "give America a raise" by lifting the minimum to $10.10—a move he vowed to make for federal workers via execu- tive order. "America does not stand still—and neither will I," he said. Also on Obama's mind was the country's unemployment situation, which looked grim as of the end of December: a 6.7 percent unemploy- ment rate as more Americans abandoned their search for work. "I'm ... convinced we can help Americans re- turn to the workforce faster by reforming unem- ployment insurance so that it's more effective in today's economy," the president said, before add- ing a jab at lawmakers: "But first, this Congress needs to restore the unemployment insurance you just let expire for 1.6 million people." Senate Democrats and Republicans are reportedly in a stalemate over possible legislation to extend unemployment benefits, according to e Hill. e unemployment remark wasn't the only shot Obama took at Congress. He also chastised lawmakers for the gridlock that led to October's partial federal government shutdown. He did strike a more hopeful tone, however, when discussing December's bipartisan budget deal. "Nobody got everything they wanted, and we can still do more to invest in this country's future while bringing down our deficit in a balanced way," the president said. "But the budget com- promise should leave us freer to focus on creating new jobs, not creating new crises." BUSINESS TICKS UP AT FREDDIE MAC Freddie Mac's mortgage business grew—albeit slowly—in December, capping the year with an overall negative growth rate. According to the GSE's December volume summary, its total mortgage portfolio grew at an annualized rate of 0.4 percent for the month, bringing 2013's average rate to -2.6 percent. e portfolio grew in four months and shrank in eight months last year, includ- ing a streak of declines from July through November. As of the end of the year, the portfolio was valued at approximately $1.91 trillion. Total purchase and issuance volume grew in December to $25.4 trillion, its highest level since September. Single-family refinance purchase and guarantee volume was $10.8 billion, represent- ing 50 percent of total purchases or issuances. Relief refinance mortgages comprised about 29 percent of refinance volume. Meanwhile, multifamily new business activity was $3.7 billion, bringing Freddie Mac's yearly total to $25.9 billion. e single-family seriousl delinquency rate was down to 2.39 percent, down from 2.43 percent, while the multifamily rate rose to 0.09 percent, its highest level since June. Freddie Mac reported 6,731 loan modifica- tions in December and 83,188 modifications for the year. Respondents who thought it would be easy to get a home mortgage Source: Fannie Mae National Housing Survey STAT INSIGHT 52%

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