ARLINGTON, Va.–NAFCU is projecting the Fed will cut short-term interest rates again “in the near future” as the result of current economic conditions, particularly in the housing market.
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In a Macro Data Flash distributed to its members, NAFCU noted new home sales during November decreased on an annualized basis by 9%, the slowest pace since January of 1991. The biggest drop was in the Midwest (27.6%).
NAFCU is projecting the problems in housing won’t be evaporating anytime soon, and that the housing market “will continue to put a drag on economic growth next year. A stabilization of conditions in the housing market is not expected until well into 2008.”
