News analysis the housing market cooling USA economic recovery add new worry

xinhuanet.com Washington on 7 May, (reporter Gao Pan Zheng Qihang) America Federal Reserve Chairman Yellen expresses 7 days, after the cold weather is expected to subside America economic growth will increase, but also warned the cooling real estate market could be a drag on the USA economic recovery. cheap mlb jerseys

Yellen day in America Congress Joint Economic Committee said, the Ministry of commerce data show that the first quarter of this year for the first time, the valuation of USA economic growth almost stalled, but is mainly affected by the cold weather and other temporary factors; recent cheapjerseys.us indicators show American consumer and industrial production rebounded, indicates that the second quarter of USA economy will be strong growth. But she also warned that, since 2011, continued recovery of the real estate market this year has been "disappointing", the need for close observation.

Yellen will be the real estate market as one of the two major uncertainties facing the future America economic growth. She stressed that the recent market cooling, America may last longer than expected, will not return to the earlier recovery efforts. In addition, our financial pressure, tense geopolitical emerging economies rise overseas unfavorable factors will weaken confidence in a global economic recovery.

compared with the Fed released last week after a monetary policy meeting statement, Yellen's comments cheap jerseys were a bit worried about a housing recovery. In fact, the real estate industry belongs to the interest rate sensitive sectors, by-product of recent property market cooling down to some extent is the Fed's exit from quantitative easing policy will inevitably bring about the "".

in the past few years, the fed through the implementation of the quantitative easing policy purchases of mortgage-backed securities, sharply lower mortgage interest rates, the mortgage property buyers to the housing loan refinancing with lower interest rates, lower loan interest rates for extended loan period and preferential, provides important support cheap nba jerseys for the America housing recovery. With the steady improvement of America economic recovery and employment market, demand for housing personal income level rise and suppressed the release, as well as international investors are optimistic about the prospects America housing rebound, the past two years USA housing staged Jisheng quantity and price, the rapid rise of unpopular situation.

but as the markets expect the Federal Reserve to exit from quantitative easing and the Fed began performing reduced purchase debt plan, America mortgage interest rates gradually ascending, mortgage refinancing activity fell sharply. So far, the Fed has reduced the monthly purchase debt from $85000000000 down to $45000000000. USA cheap nfl jerseys 30 year fixed rate mortgage loan interest rate in May from last year's record low rise about 1 percentage points to 4.3%. Financing costs rise and the sharp rise in prices so that the residents purchase affordability decline sharply, potential property buyers to wait, America recovery in the housing market showing signs of cooling. According to USA media reports, over the past year mortgage property buyers for the month rose by an average of about 20%.

despite the current America housing has entered the traditional spring sales season, because many USA families will choose to lock the school district room at the end of the summer, but American housing sales situation is not optimistic about the. As the spring property market sales.