New home sales drop 13.4 percent, Lowest since October 2012, Rising mortgage rates and slow employment growth, June sales revised downward, Obamacare part time job economy
“Over the last six months, of the net job creation, 97 percent of that is part-time work,”…Keith Hall, former BLS chief
“11.4%: What the U.S. unemployment rate would be if labor force participation were back to January 2008 levels.” …James Pethokoukis, American Enterprise Institute, June 2013
“Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”…George Orwell, “1984″
The article doesn’t mention the impact of Obamacare on the job market. It mentions slow employment growth.
But we are in a Obamacare part time job economy and still have high unemployment rates.
From Market Watch August 23, 2013.
“New-home sales slump to lowest rate since October”
“Sales of new homes slumped in July with each region seeing sizeable drops, raising questions about the recovery in the housing market.
New housing construction is seen in Poolesville, Maryland.
New-home sales fell 13.4% to a seasonally adjusted annual rate of 394,000 in July, the lowest rate since October, the U.S. Department of Commerce reported Friday.
Rising mortgage rates may be behind July’s drop, though the monthly data are quite volatile and economists had expected some pull back after sales gains in recent months. Longer-term trends point to continuing growth: new-home sales in July were up 6.8% from the year-earlier period.
“This was an unambiguously weak report, and it reflects in part some of the negative impact of higher mortgage rates,” said Millan Mulraine, director of U.S. research and strategy at TD Securities.
Economists polled by MarketWatch had expected a July sales rate of 485,000, compared with an original June estimate that pegged the rate at 497,000. On Friday the government revised June’s rate to 455,000.”
“However, there’s concern about the bite that rising rates will take out of demand. Since early May, the average rate for the 30-year fixed-rate mortgage has increased more than one percentage point. As the Federal Reserve starts winding down its massive bond-buying program, a tapering that could start this year, rates will continue to rise, forcing would-be buyers to scale back purchase plans.
Rising rates aren’t the only headwinds facing consumers and builders. Slow employment growth is also hampering sales as buyers are wary of forming new households. Also, relatively low inventories are heating up competition and prices, making it tough for first-time owners to participate in the market.”