Consumer Confidence, New Home Sales Slump

Grim economic indicators continue to stack up

By M. Morris, Newser Staff

Posted Jun 26, 2007 12:13 PM CDT

(Newser) – Indicating that the topsy-turvy economy probably won't be righting itself anytime soon, consumer confidence dropped in May, as did new home sales, a signal that the reeling housing market has yet to hit bottom. The Fed will likely take up consumer worries at a 2-day meeting that starts tomorrow, Bloomberg reports, and probably won't change interest rates.

The larger-than-projected drop in consumer confidence and the 1.6% dip in new home sales reported today, combined with rising mortgage rates in a market already beset by subprime defaults, indicate trouble ahead for both housing and the economy overall. Says one economist: "There are some pretty significant negative risks for economic growth."

A concrete foundation for a new home under construction appears in North Andover, Mass. Wednesday, May 23, 2007. Sales of new homes surged in April by the biggest amount in 14 years, but the median price... (Associated Press)

A sold sign is posted for a new home in Palo Alto, Calif., Monday, May 14, 2007. The government reports that sales of new homes surged by 16.2 percent in April but home prices fell by a record amount.... (Associated Press)

Construction is underway on new townhomes in Davenport, Fla., Wednesday, May 23, 2007. Sales of new homes surged in April by the biggest amount in 14 years, but the median price of a new home dropped... (Associated Press)

Construction workers work on the structure of new townhomes in Davenport, Fla., Wednesday, May 23, 2007. Sales of new homes surged in April by the biggest amount in 14 years, but the median price of a... (Associated Press)

April New Home Sales Surge 16.2 Percent (Getty Images (by Event))

(FILES) A real estate "For Sale" sign hangs on the front of new... (Getty Images)

FILE PHOTO: New Home Sales Drop For Second Consecutive Month (Getty Images)

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Consumer Confidence, New Home Sales Slump

Grim economic indicators continue to stack up

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Home Sales Plunge to 4-Year Low

Inventory glut, rising mortgage rates bode ill for quick rebound

Rise in Renters Wiping Out Gains in Homeownership

Effects of subprime crisis evident as percentage of owners drops

Squeezed Owners Seek Tax Break as Home Values Drop

Local governments feel the pinch as property taxes decline

Nov. Housing Starts Fall 3.7%

And permits for new homes fall to 14-year low

US Median Home Price to Drop

Projected 1-2% decline for 2007 would be the first since 1950

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Consumer Confidence, New Home Sales Slump

Grim economic indicators continue to stack up

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OTHER STORIES ON OUR RADAR

real estate • consumer • housing market • Federal Reserve • subprime mortgages • homes • mortgage • home sales • housing starts

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Home Sales Plunge to 4-Year Low

Inventory glut, rising mortgage rates bode ill for quick rebound

Rise in Renters Wiping Out Gains in Homeownership

Effects of subprime crisis evident as percentage of owners drops

Squeezed Owners Seek Tax Break as Home Values Drop

Local governments feel the pinch as property taxes decline

Nov. Housing Starts Fall 3.7%

And permits for new homes fall to 14-year low

US Median Home Price to Drop

Projected 1-2% decline for 2007 would be the first since 1950

About Us

Site

Newser By Users

Community

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More News

What is Newser?