The latest jobs report has come in with more new filings for unemployment than analysts expected, up 20,000. This comes after two consecutive weeks of falling applications.

Other trouble is brewing in the market as well. Freddie Mac has more trouble on its hands, reporting that weakness in housing has led to a third quarter loss. Freddie is now requesting $100 million from the Treasury to maintain a positive net worth.

What were the culprits of this down quarter? "As we near the end of 2010, the housing market remains fragile and has recently come under renewed pressure from slowing economic growth, weaker employment and foreclosure uncertainties," the chief executive, Charles E. Haldeman Jr., said in a statement. "We believe that it will be a considerable time until the housing market has a sustained recovery."

Many of the delays and expenses being seen on Freddie Mac's portfolio come in the form of selling repossessed and foreclosed properties.

Freddie Mac isn't the only establishment feeling the pain of the down market. In an attempt to help stimulate the economy the Federal Reserve will now begin buying Treasury Bonds. Some economists worry, however, this move will not spur the job growth expected by the Fed, and instead will instigate inflation.

According to The New York Times, "The Fed will again begin buying bonds, as it did last year, to reduce long-term interest rates, like those on mortgages. Lower rates typically lead to more borrowing and spending by households and businesses. ... Of course, the risks of taking action have not gone away. The new policy could eventually cause inflation to spike. All else equal, a policy that encourages more spending will cause prices to rise. And if investors begin to think that a dollar tomorrow will be worth much less than one today, they may refuse to lend money at low interest rates, undercutting the whole point of the bond purchases."

Time will tell if this latest measure gives a positive boost to spending and the economy.

For now, consumers are remaining cautious, especially when it comes to remodeling activity in the housing market. National Association of Home Builders Chair Donna Shirey, reports that "homeowners may be looking at remodeling but they are scared to take the leap."

"The remodeling market hit the same mid-year stall that the rest of the housing market and the economy hit. Remodeling continues to remain weak as consumers hold off on investing in their home until they feel more confident about the overall economy," said NAHB Chief Economist David Crowe. "The economy is growing, but at a rate well below the level needed to reduce unemployment and ignite consumer confidence. For now, professional remodelers are concentrating on consumers' requests for smaller home improvements until the economic recovery strengthens."

Published: November 8, 2010

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Carla Hill, M.A., works on the Realty Times staff as Managing Editor for our online publication. She also is Producer for the real estate news channel, seen daily on RealtyTimes.com and on video newsletters nationwide.