Higher Interest Rates Are The Biggest Threat To The Stock Market

UPDATE 1-Canada August housing starts weakest since April

Recent posts The Christian Science Monitor Weekly Digital Edition These are all legitimate concerns, of course, but they pale in comparison to what I believe is the number one threat right now: Interest rates. RECOMMENDED: Top 10 best ‘flip market’ cities And by interest rates, I do not mean the absolute level, but the velocity of the increase, taking place at a speed the markets are currently unprepared for and businesses may not have planned for. The effect of higher rates on the housing market is already being felt in the New Home Sales number. We’ve seen a 20% drop-off in new home sales in June and July, and this does not bode well for existing home sales in the coming months or in Case-Shiller home prices next quarter.
For the original version including any supplementary images or video, visit http://www.csmonitor.com/Business/The-Reformed-Broker/2013/0910/Higher-interest-rates-are-the-biggest-threat-to-the-stock-market

The August figure was the weakest housing start reading since April, when new homes were being built at an annualized rate of 175,922. The average so far this year stands at around 183,200. property management in baltimore “Although today’s report and yesterday’s permits data suggest housing is holding up fairly well, we expect higher mortgage costs, buyer fatigue and recent policy changes to contribute to a more appreciable slowing in the months ahead,” Peter Buchanan, an economist with CIBC World Markets, said in a client note. The report follows data out Monday which showed building permits hit record levels in July, mostly from robust strength in the commercial sector. Canadian policymakers have been keeping a close eye on the country’s housing market after record low interest rates helped fuel a post-recession property boom that some fear could be a bubble.
For the original version including any supplementary images or video, visit http://www.reuters.com/article/2013/09/10/canada-economy-housing-idUSL2N0H60KC20130910

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s