Journal Article

Slowdown in housing won't shut down economic growth

Abstract: After years of press predictions that the hot housing market was about to cool down, the inevitable seems to be unfolding. Compared with the same period a year earlier, sales of new and existing homes slowed over the first four months of 2006, inventories of unsold new homes rose sharply and new and existing home prices softened. With mortgage interest rates creeping up, it is conceivable that housing may weaken further. ; But there?s no reason to think that the overall economy is threatened, as when stock prices did an about-face in 2000, helping to send the country into recession.

Keywords: Economic conditions; Housing;

Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: The Regional Economist

Publication Date: 2006

Issue: Jul

Pages: 3