Richard Tafoya
Jan 28th, 2008, 11:28 AM
Bloomberg:
http://www.bloomberg.com/apps/news?pid=20601103&sid=aH3heOi_252I&refer=news
Purchases of new homes in the U.S. unexpectedly fell to a 12-year low in December, ending the worst sales year since records began in 1963 and signaling little prospect for a recovery.
Sales decreased 4.7 percent to an annual pace of 604,000, the Commerce Department said today in Washington. The median price dropped 10 percent from December 2006, the most in 37 years.
Homebuilders' stocks fell in New York trading and the dollar extended its drop as the figures spurred speculation the Federal Reserve will keep reducing interest rates. The report may also reinforce concern that declining home prices and stricter lending will lead to more foreclosures and hurt consumer spending.
``Today's numbers are a new blow,'' said Chris Rupkey, a senior financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York, who forecast a decline to 613,000. ``The broader economy is very, very close to falling over the edge. The Fed really needs to think aggressively.''
http://www.bloomberg.com/apps/news?pid=20601103&sid=aH3heOi_252I&refer=news
Purchases of new homes in the U.S. unexpectedly fell to a 12-year low in December, ending the worst sales year since records began in 1963 and signaling little prospect for a recovery.
Sales decreased 4.7 percent to an annual pace of 604,000, the Commerce Department said today in Washington. The median price dropped 10 percent from December 2006, the most in 37 years.
Homebuilders' stocks fell in New York trading and the dollar extended its drop as the figures spurred speculation the Federal Reserve will keep reducing interest rates. The report may also reinforce concern that declining home prices and stricter lending will lead to more foreclosures and hurt consumer spending.
``Today's numbers are a new blow,'' said Chris Rupkey, a senior financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York, who forecast a decline to 613,000. ``The broader economy is very, very close to falling over the edge. The Fed really needs to think aggressively.''