News

Existing homes sales are expected to decline to 4.94 million units annual rate in the month of June, down from 4.99 million units in May, a decrease of 1% leading it to a new record low, which will still highlight the housing market as one of the major concerns in the economy, and one of the reasons the feds should not start hiking rates yet.

As the financial crisis still ongoing as Mr. Bernanke said, demand on houses still weak as potential buyers are still waiting for more decline in prices, while less consumer confidence in the economy still adding to the foreclosures, and still poses a lot of threats on consumer spending and therefore will stall economic revival.

Bush administration withdraw their complete rejection to the plan put forth by Mr. Paulson to bail out the U.S. largest two mortgage holders Fannie Mae and Freddie Mac, which up to a certain extent might lead investors to believe that they can actually now see the light at the end of the tunnel for the housing market, that's if and only if Bush approved to pay the bill.

The housing sector was the first to go down in the economy, actually it was the reason behind the current crisis, and unless that problem get solved from the very roots, we cant expect the economy to emerge from this crisis, for that regardless how much they needed that rate hike, it is going to be extremely difficult to do with such a deteriorating housing sector, and they will again need lower it again if the sector continues to slump.

Investors are keen to see what might happen today and tomorrow, with the ex-isting homes sales and the new home sales number to report fully on the housing sector, and to draw a better picture for the economy and to the future of the interest rate.