A significant source of growth in the US economy in recent years has exhibited further weakening per a Commerce Department report released this morning. Let’s look at new home sales and prices.
New home sales and prices fell to their lowest rate in seven years and new home prices had the steepest one year decline since 1970 along with rising new home inventories. Additionally, homebuilders KB Home and Lennar both reported dismal performances for their 3rd quarters.
On a more upbeat note, the number of new unemployment claims declined to the fewest new claims since May and the US GDP grew in the 2nd quarter at an annualized rate of 3.8%.
Still, the storm clouds seem to be gathering.