Claim your bonus gift: give any amount to get 4 KaiPA coasters! Donate today

Housing falls alone

John Dimsdale Nov 20, 2006
HTML EMBED:
COPY

Housing falls alone

John Dimsdale Nov 20, 2006
HTML EMBED:
COPY

TEXT OF STORY

SCOTT JAGOW: The latest forecast from the National Association for Business Economics comes out today. Here’s the gist: The housing market may be collapsing, but it probably won’t take the whole economy down with it. More now from John Dimsdale.


JOHN DIMSDALE: Housing’s decline will bottom out by next summer. Inflation will slow down and oil prices will drop. And the economy will grow a relatively healthy 2.5 to 3 percent in 2007.

That’s this morning’s forecast from a panel of 50 business economists.

One of them, John Silvia with Wachovia Bank, figures cheaper gasoline will be good news for December’s holiday shopping.

JOHN SILVIA: It appears as if the decline in oil prices over the last month or two has been accompanied by a rise in consumer confidence.

The silver lining in the housing slowdown is that the slower economy will bring inflation under control, so Silvia expects the Federal Reserve will hold steady on short-term interest rates for a while.

The consensus of the panel of business economists is that interest rates will begin to come down in the second half of 2007.

In Washington, I’m John Dimsdale for Marketplace.

As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.

Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.

Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.