According to a recent CNNMoney report, one major reason for the continued struggles of the U.S. economy is the large average amount of household debt.
Experts relayed to the news source that the amount of debt owed by households and businesses is a larger issue than the government debt. Furthermore, as unemployment levels and slow growth continue to trend downward, this debt will become a bigger issue.
"I think it's one of the major headwinds we're fighting against right now," David Wyss, a visiting fellow at Brown University and former chief economist at Standard & Poor's, told the news source.
Another expert, Carmen Reinhart, told CNNMoney that the nation will probably experience continued disappointment. "If historic norms hold, deleveraging isn't pretty, and it is not a smooth process," she told the news source.
As consumer spending continues to flounder, so will the unemployment rate, the article states.
While the rate has been underwhelming nationwide, some areas have improved. A recent Metrostudy report discovered Houston added more than 50,000 jobs year-over-year in February. With this occurring, the Houston real estate market might recover more quickly than others, based upon the information shared by the aforementioned experts.
Courtesy of 2M Realty News