Sales of new U.S. homes declined more than projected in July to the lowest level in five months, indicating the industry is struggling to stabilize two years into the economic recovery.
Purchases fell 0.7 percent to a 298,000 annual pace after a 300,000 rate in June that was slower than previously estimated, figures from the Commerce Department showed today in Washington. The median projection in a Bloomberg News survey of economists called for a 310,000 rate in July.
Builders are less inclined to start new projects as they face competition from cheaper existing homes and the prospect of foreclosures putting more unsold properties on the market. A jobless rate above 9 percent and limited employment growth indicate housing may keep weighing on the recovery even with mortgage rates at a record low.
“There is no upside momentum at all in housing,” said Eric Green, chief market economist at TD Securities Inc… No sh*t, Sherlock….
Read more at http://www.bloomberg.com/news/2011-08-23/u-s-new-home-sales-fell-in-july-to-lowest-level-in-five-months.html
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