Cooler U.S. Housing Market to Slow GDP in 2006

Published on:
12 September 2006 at 10:20 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00005872-cooler-us-housing-market-to-slow-gdp-in-2/

A cooler housing market will likely rein in U.S. economic growth in 2006, as mortgage rates and home inventory have been rising, said Ethan Harris, Lehman Brothers’ chief U.S. economist on Monday.

The expected housing slowdown could knock GDP growth lower by as much as a full percentage point if homeowners sharply curb their borrowing against their homes and spending the gains from outright sales, Harris said.

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