Bloomberg.com is reporting today that US home sales dropped in July, over 11 percent from a year earlier according to the National Association of REALTORS (NAR). This report comes on the heels of a statement made by Chicago Fed President Michael Moskow said a sharp decline in housing, which by some estimates accounted for more than half of growth over the last three years. According to Moskow a sharp decline in the national housing market would be a risk to the economy.

Of course this should come as no surprise to anyone with half of a functioning brain. The FOMC is walking a very fine line right now trying to balance a measured slow down in the national housing market and still keep inflationary pressures in check.

tags: fed, fomc, housing, inflation, interest rates, nar, real estate

This entry was posted on Wednesday, August 23rd, 2006 at 4:18 pm and is filed under Financial News, FOMC, Inflation, Interest Rates, Housing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.