Freddie Mac’s first quarter 2021 economic forecast is unusually
short, and, unlike recent forecasts from either of the GSEs, has relatively few
revisions. The company’s economists say that nearly a year after the first cases
of COVID-19 were diagnosed in the U.S., economic growth remains uncertain, with
answers largely hinging on the roll-out of the new vaccines. The labor market
remains weak with close to 20 million collecting unemployment insurance.
December’s job losses, the first since last April, didn’t change the
unemployment rate from 6.7 percent because labor participation also declined.