Housing remains a weak spot for the US economy, as suggested in yesterday’s news of a surprisingly large decline in new home sales for June. The report follows last week’s update on new residential construction, which also slumped more than expected last month. On a brighter note, existing home sales, which constitute the lion’s share of transactions for residential housing, posted a sharper-than-predicted gain for June. Nonetheless, housing’s overall profile looks mixed at best. Given this sector’s influential link with the business cycle, it’s fair to say that housing is a leading risk factor at the moment.
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