The slowdown in housing took a measurable bite out of the economy this past quarter, helping bring down growth from 5.6% to a more modest 2.5%. The slowdown is perhaps the clearest sign yet that the Fed's two-year campaign to tap the brakes on the economy by raising rates is working.
"Housing is going from being far and away the most important contributor to growth to being a measurable drag, and it's happening gracefully so far," said the chief economist of Moody's Economy.com.
Meanwhile, "Off The Charts" gave the numbers on the housing downturn, and they aren't pretty. Sales of single-family homes are down 4.4%, the biggest dip in over a decade, while the number of homes on the market rose 33% -- the largest hike on record for the National Association of Realtors. (Sunday.)
Link: Many Homes Are on the Market and Sales Numbers Are Declining - New York Times.
Recent Comments