The National Association of Business Economics (NABE) keeps its economic outlook ‘sub-par', but it still holds optimism. The group expects consumer spending in the US to remain modest in the coming months due to sluggish gains in employment rate and the almost negligible household net worth growth.
NABE is positive that the economy would not slip back into a possible recession. That counters the dismal figures and the bearish outlook of the panel not just to the economy, but more to the property market in the country.
According to analysis released by the group, the housing market continues its struggle. NABE backs the recent report of the National Association of Realtors or NAR that sales of existing homes dropped in October after gains in the preceding two months.
NAR analysts said the sales pattern in October could continue, but may show improvements when spring comes.
In addition, the number of foreclosure liquidations increased again last third quarter. In the three months ending September, about 1.5 out of 1,000 properties were liquidated. It was considered another quarterly peak.
Meanwhile, the Mortgage Bankers Association (MBA) has recently reported that the rate of mortgage delinquency across the US has dropped in the third quarter. This came as clues to improvements in the national job market came. The group's analysts note that despite the positive report for the month of October, overall job market in the US improved only marginally in the period. Thus, the delinquency rate remains high despite its decline.
It could be recalled that NAR released a statement during the first week of October that the recovery of the housing market depends on jobs. The association added that it could also be helped by consumers' possible access to credit.
At another upside, interest rates have started dropping. This development may encourage more consumers to take advantage of lower borrowing rates to buy new or existing homes and even to refinance their current mortgages. Interest rates have recently declined to one of its lowest levels in the past two decades.
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