The credit market is continuing to weigh on economic indicators, Bloomberg reports, as home prices and consumer confidence both notched records in their downward swoon. A report released today showed home values down an unprecedented 3.2% in the second quarter. Consumer confidence this month fell to its lowest levels in two years.
Economists blame sagging sales and choosier mortgage lenders for the decline in home prices. “The pullback in the U.S. residential real-estate market is showing no signs of slowing down,” one economist said. A realtor trade group predicts housing demand will plummet to a five-year low this year. And the drop in consumer confidence could negatively impact consumer spending, which composes two thirds of the US economy.