From: Michael Croft
Just thought this may be of interest as it has implications for Australia and the global economy. As I said post September 11 last year and was howled down by some, the disaster which was (and still is) Sept 11 will be but a blip on the screen in financial terms - politically, psychologically, emotionally is another matter.
Michael Croft
Low rates kick in for US housing
Jan 18 07:54
AFP
The housing market defied the US recession last year with groundbreaking of new homes rising 2.2 per cent, and experts say it may fuel a recovery in 2002.
"What a year for housing," said Naroff Economic Advisors economist Mr Joel Naroff.
"A recession, a terrorist attack and massive layoffs apparently made people decide that there was no place like a new home. And new homes we got," he added.
"Housing activity faded a bit in December but the level of activity was still, should I really use the word, awesome."
Groundbreaking on new US homes fell 3.4 per cent in December to a seasonally adjusted annual rate of 1.570 million units, the US Commerce Department said.
Wall Street analysts had expected a fall of 2.4 per cent from November.
Year-on-year, housing starts in December were up 2.5 per cent.
For the whole of 2001, housing starts climbed 2.2 per cent to 1.60 million units.
The outlook also remained strong, Mr Naroff said, with building permits increasing 3.6 per cent to 1.653 million units in December.
"Housing was the rock upon which the economy leaned during 2001 and it looks as if it will continue to play that role in 2002," he said.
Low mortgage rates, dragged down partly by the US Federal Reserve's aggressive cuts to short-term rates, were a major boon to activity, he said.
But people were only taking on mortgages because confidence in their ability to make payments was strong.
Just thought this may be of interest as it has implications for Australia and the global economy. As I said post September 11 last year and was howled down by some, the disaster which was (and still is) Sept 11 will be but a blip on the screen in financial terms - politically, psychologically, emotionally is another matter.
Michael Croft
Low rates kick in for US housing
Jan 18 07:54
AFP
The housing market defied the US recession last year with groundbreaking of new homes rising 2.2 per cent, and experts say it may fuel a recovery in 2002.
"What a year for housing," said Naroff Economic Advisors economist Mr Joel Naroff.
"A recession, a terrorist attack and massive layoffs apparently made people decide that there was no place like a new home. And new homes we got," he added.
"Housing activity faded a bit in December but the level of activity was still, should I really use the word, awesome."
Groundbreaking on new US homes fell 3.4 per cent in December to a seasonally adjusted annual rate of 1.570 million units, the US Commerce Department said.
Wall Street analysts had expected a fall of 2.4 per cent from November.
Year-on-year, housing starts in December were up 2.5 per cent.
For the whole of 2001, housing starts climbed 2.2 per cent to 1.60 million units.
The outlook also remained strong, Mr Naroff said, with building permits increasing 3.6 per cent to 1.653 million units in December.
"Housing was the rock upon which the economy leaned during 2001 and it looks as if it will continue to play that role in 2002," he said.
Low mortgage rates, dragged down partly by the US Federal Reserve's aggressive cuts to short-term rates, were a major boon to activity, he said.
But people were only taking on mortgages because confidence in their ability to make payments was strong.
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