Saturday, October 21, 2006

U.S. Finds Cooling in Housing Market

The U.S. economy continued to grow in the early fall despite a "widespread cooling" in the once-hot housing market.

However, there was a distinct slowdown in housing with the majority of the U.S. regions reporting lower asking prices for homes, a softening in sales and rising inventories of unsold homes.

The latest snapshot of the economy, based on reports from the Fed‘s regional banks, will be used when central bankers next meet on Oct. 24-25 to consider what to do with interest rates.

Minutes released on Wednesday of the Fed‘s deliberations in September found that Fed officials remained concerned about inflation. Those worries were seen as a signal that the Fed will not soon start cutting interest rates, something that financial markets had grown hopeful might occur given the spreading economic slowdown.

1 Comments:

Blogger Akron Crossing said...

Here in suburban Minneapolis, Minnesota (home to pictured Federal Reserve Bank), the housing market has not only slowed, but shifted, according to one representative of the upscale home-building company D. R. Horton. Working at a D. R. job site in Lakeville last week, I spoke with a rep who said that new homes sales are still relatively strong in many outer ring suburbs-homes targeted toward upper - income earners.
As for "used" homes in many inner ring suburbs (around Minneapolis), the story seems to be that prices can't drop fast enough. In fact, there appears to be no substantial rebound in sight for these markets.

Cards or Tigers?

12:27 AM  

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