Wednesday, September 26, 2007

Steepest fall in US house prices in 16 years fuels fears of recession

Words almost failed observers on both sides of the Atlantic yesterday as they reacted to the worst American economic data to emerge for some considerable time. Consumer confidence slumped to the lowest level in almost two years and home prices scored their worst performance in 16 years, threatening US household spending, spurring talk of recession and prompting calls for the Federal Reserve to keep cutting interest rates. The Conference Board's index of consumer confidence fell more than forecast in September, to 99.8 from 105.6.

Meanwhile, the American National Association of Realtors said August sales of previously owned houses dropped 4.3 per cent, with inventories at exceptionally high levels, indicating that house sellers are not yet willing to reduce prices by as much as the collapse in demand would warrant.

Read Complete story

No comments: