Home sales hit 15 year low

Economic recovery seems to have halted.

As the National Association of Realtors issued the report, Chicago Federal Reserve President Charles Evans warned that the risk of a double-dip recession was higher than six months ago although he did not think output would contract, describing the recovery as ongoing but modest.

Existing home sales dropped a record 27.2 percent from June to an annual rate of 3.83 million units, the lowest since May 1995. June’s sales pace was revised down to a 5.26 million-unit pace from a previously reported 5.37 million.

U.S. stocks .SPX added to losses on the report, while prices for safe-haven government debt extended gains. The U.S. dollar fell against the yen and euro.

The housing market has been mired in weakness following the end of a homebuyer tax credit in April, which pulled forward sales and building activity.

The surprisingly weak home sales data added to signs that the economy was rapidly losing strength, even though the drop may have been exaggerated by the end of a popular housing tax credit. Stubbornly high unemployment has burdened recovery from the longest and deepest recession since the Great Depression.

Almost three-quarters of Americans are very concerned about unemployment and more people now disapprove of President Barack Obama than approve of him, a Reuters/Ipsos poll found on Tuesday.

In grim news for Democrats ahead of November’s midterm elections, 72 percent of people said they were very worried about joblessness and 67 percent were very concerned at government spending.

With congressional elections a little more than two months away, the poll showed 92 percent of those surveyed were very concerned or somewhat concerned about joblessness.

The U.S. unemployment rate has been hovering near 10 percent all year, registering 9.5 percent in June and July.

Obama’s disapproval rating was 52 percent, overtaking his approval rating for the first time in an Ipsos poll. Only 45 percent of people said they approved of the president’s performance.

That number, coupled with a hearty 62 percent who think the country is going in the wrong direction, could spell trouble for Democrats, who control both chambers of Congress and the White House.

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Posted on August 24, 2010, in Market Trends, Newspaper & Journal Articles and tagged , , , , , , , , . Bookmark the permalink. Leave a comment.

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