Page 7 - atoday sept 30
P. 7
U.S. NEWS A7
Wednesday 30 September
US Financial Front:
American home prices rise steadily in July, lifted by higher sales
C. S. RUGABER to qualify for a loan. A ‘for sale’ sign is posted in front of a home in Miami. Standard & headed up soon. Federal
AP Economics Writer “The market is continuing Poor’s released its 20-city home price index for July on Tuesday, Reserve Chair Janet Yel-
WASHINGTON (AP) — U.S. to heal and find its footing Sept. 29, 2015. len has indicated that the
home prices rose at a solid in a new environment, one Fed may raise short-term
pace in July, as would-be where highly local factors (AP Photo/Lynne Sladky, File) rates for the first time in nine
buyers competed for a ... matter more than na- years before the end of the
diminished supply of avail- tional trends,” she said. Still, housing faces several the past 12 months. That is year. That would eventual-
able housing. The Case-Shiller index cov- challenges in the coming likely pricing many would- ly push up mortgage rates.
The Standard & Poor’s/ ers roughly half of U.S. months. Prices are rising at be buyers out of the mar- Those trends may already
Case-Shiller 20-city home homes. The index mea- more than double the rate ket. be weighing on sales of ex-
price index climbed 5 per- sures prices compared of wages, which have in- And while mortgage rates isting homes. They slid near-
cent in July from a year with those in January 2000 creased just 2.2 percent in are still low, they could be ly 5 percent in August from
earlier. That’s up from a 4.9 and creates a three-month July’s eight-year high to
percent annual pace in moving average. The July the lowest level since April,
June. figures are the latest avail- the National Association of
Home prices rose in all able. Realtors said last week.
20 cities over the past 12 Consistent price gains can And fewer Americans
months. San Francisco make homeowners feel signed contracts to buy
posted the biggest gain of wealthier and more likely to homes in August. That sug-
10.4 percent, followed by spend, providing a boost to gests sales may slip further
Denver with 10.3 percent. the economy. Higher home in the coming months. A
Steady job growth and an values also reduce the signed contract typically
economic recovery in its number of Americans who precedes a completed
seventh year have encour- owe more on their mort- sale by one or two months.
aged more Americans to gages than their homes are Still, existing home sales are
buy homes. That lifted sales worth, a condition known 6.2 percent higher than a
to an eight-year high in as being “under water.” year ago.q
July. Yet those buyers have
bid up prices in many ar- US consumer confidence rises again in September
eas because the number
of homes for sale remains PAUL WISEMAN Grocery cashier Amarilys Martinez, right, checks out a customer ment in confidence sug-
limited. AP Economics Writer at a local grocery in the Little Havana area of Miami. The Con- gests that the recent inter-
The current housing inven- WASHINGTON (AP) — ference Board released its September index on U.S. consumer national turbulence has
tory is equal to 5.2 months American consumers were confidence on Tuesday, Sept. 29, 2015. had little impact on con-
of sales, below the six feeling more confident sumers’ domestic confi-
months that is typical in a again this month, good (AP Photo/Alan Diaz) dence,” economist Bricklin
balanced housing market. news for the U.S. economy. Dwyer of BNP Paribas wrote
Price gains were much The Conference Board, share of Americans said ployment has dropped to in a research note. “We ex-
smaller in many Eastern a business research group, they were planning to buy a seven-year low 5.1 per- pect consumption to con-
and Midwestern cities. said Tuesday that its con- cars and homes over the cent. tinue to expand at a solid
Home prices were just 1.7 sumer confidence index next six months. But worries about an eco- pace throughout the end
percent higher in Washing- rose again to 103 in Sep- The U.S. economy is looking nomic slowdown in China of 2015.”
ton, D.C. compared with tember after surging in Au- healthy. Economic growth and other emerging mar- Consumer spending ac-
12 months earlier, only 1.8 gust to 101.3. The Septem- came in at a 3.9 percent kets have rattled financial counts for about 70 per-
percent higher in Chicago, ber reading was the highest annual rate from April markets. cent of U.S. economic ac-
and up just 1.9 percent in since January. Economists through June, and unem- “The surprising improve- tivity.
New York. had expected the index to Still, another gauge of con-
Svenja Gudell, chief econ- fall this month. sumers’ spirits — the Univer-
omist at real estate data Consumers’ assessment of sity of Michigan’s consumer
firm Zillow, said the housing present economic condi- sentiment index — fell this
market is continuing to im- tions hit the highest level in month to the lowest level in
prove despite some con- eight years. More than 25 almost a year. Richard Cur-
flicting trends. New home percent of Americans said tin, chief economist for the
sales jumped to a seven- jobs were plentiful, high- Michigan survey, blamed
year high in August even est share since September the drop on worries that
as existing home sales 2007. troubles overseas will hurt
slipped. Mortgage rates re- Expectations for the future hiring and wages in the
main low, though it can be fell slightly. Compared to United States.q
difficult for first-time buyers August, however, a bigger
