US house market fall 'new blow'
5:00AM Wednesday January 30, 2008
Purchases of new homes in the US unexpectedly fell to a 12-year low in December, ending the worst sales year since records began in 1963.
Sales decreased 4.7 per cent to an annual pace of 604,000, the Commerce Department said yesterday.
The median price dropped 10 per cent from December 2006, the most in 37 years.
The dollar extended its drop as the figures spurred speculation the Federal Reserve will keep reducing interest rates.
"Today's numbers are a new blow," said Chris Rupkey, a senior financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd, who forecast a decline. "The broader economy is very, very close to falling over the edge. The Fed really needs to think aggressively."
- BLOOMBERG
5:00AM Wednesday January 30, 2008
Purchases of new homes in the US unexpectedly fell to a 12-year low in December, ending the worst sales year since records began in 1963.
Sales decreased 4.7 per cent to an annual pace of 604,000, the Commerce Department said yesterday.
The median price dropped 10 per cent from December 2006, the most in 37 years.
The dollar extended its drop as the figures spurred speculation the Federal Reserve will keep reducing interest rates.
"Today's numbers are a new blow," said Chris Rupkey, a senior financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd, who forecast a decline. "The broader economy is very, very close to falling over the edge. The Fed really needs to think aggressively."
- BLOOMBERG
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