Hummer Forums by Elcova - Economic Update

Last Week in the News After a two-day meeting, the Federal Reserve left short-term interest rates at 5.25%, where they have stood since June 29, when the Fed halted a two-year rate-hike campaign aimed at controlling inflation. Fed policymakers said on October 25 that "economic growth has slowed over the course of the year, partly reflecting a cooling housing market."
Existing-home sales fell during September for a sixth straight month to a 6.18 million annual rate, a 1.9% decrease from August's unrevised 6.3 million annual pace, the National Association of Realtors (NAR) said October 25. "The worst is behind us as far as a market correction," said David Lereah, NAR's chief economist.
New-home sales in September increased 5.3% to a seasonally adjusted annual rate of 1.075 million, the Commerce Department said October 26. Economists had expected no gain.
However, the median price for a new home sold in September was $217,100, a drop of 9.7% from September 2005, the Commerce Department reported October 25. It was the lowest median price for a new home since September 2004 and sharpest year-over-year decline since December 1970.
Orders for durable goods -- items expected to last at least three years -- increased by 7.8% last month to a seasonally adjusted $226.7 billion, the Commerce Department said October 26. Economists had anticipated a 2% gain.
Interest rates on 30-year fixed mortgages rose for the week ending October 26, Freddie Mac reported.
This week look for updates on consumer confidence on October 31 and construction spending on November 1.