Lots of stories in the news today:
Housing Market a Drag on Economic Growth,
Economic growth slowed to a crawl in the third quarter, advancing at a pace of just 1.6 percent, the worst in more than three years.
The latest snapshot of the economy, released by the Commerce Department on Friday, showed that the slumping housing market figured prominently in the economy’s dramatic loss of momentum. Investment in homebuilding was cut by the biggest amount since early 1991.
.. “The housing bubble burst and that really knocked down growth,” said Joel Naroff, president of Naroff Economic Advisors.
The U.S. economy grew at a less-than- forecast 1.6 percent annual rate last quarter, the slowest pace in more than three years, as housing slumped and the trade deficit widened.
… Homebuilding declined by the most in 15 years. … Residential housing construction fell at a 17.4 percent annual rate last quarter, the biggest decline since the first quarter of 1991, after shrinking 11.1 percent in the previous three months. The decline in homebuilding subtracted 1.12 percentage points from third-quarter growth, the most in almost 25 years.
But wait, there’s more!