Economic growth is slowing and one of the reasons is a slowing housing market. This should allow the federal reserve to keep interest rates steady through the first half of 2007. Higher mortgage rates resulted in home sales being down which further resulted in less cash consumers had to spend over the five year housing boom. The housing slow down is also responsible for consumers having less cash from refinancing and home appreciation.
On 09-07-2006, The National Association of Realtors reduced their forecast for 2006 home sales and went on to say there are currently a record number of homes on the market.
On a somewhat positive note as of 09-12-2006 a barrel of crude oil: $63.76, the lowest since 03-22-2006 and as of 09-12-2006 mortgage rates: 15 year- 5.65%, 30 year- 5.94%, 1year ARM- 5.31%.
Source: Bloomberg News
Questions or comments write or email eugene.dougherty@realliving.com
Tuesday, September 12, 2006
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment