Rising mortgage rates and continued home price growth are hurting affordability and fast becoming a toxic cocktail for the nation’s homebuilders. Sentiment among homebuilders dropped 8 points in November to 60 in the National Association of Home Builders/Wells Fargo Housing Market Index. That is the lowest reading since August 2016, but anything above 50 is...
Goldman Sachs believes the U.S. economy will slow significantly in the second half of next year as the Federal Reserve continues to raise interest rates and the effects of the tax cut fade. “Growth is likely to slow significantly next year, from a recent pace of 3.5 percent-plus to roughly our 1.75 percent estimate of...
The U.K.’s draft Brexit deal, causing such upset among the British political establishment, is not perfect but the country must avoid crashing out of the EU without a deal, the president of the influential Confederation of British Industry (CBI) said Monday. “(The draft Brexit deal) is not perfect, we all know that,” John Allen told...
Former Treasury Secretary Larry Summers has put the chances of a U.S. recession at 50 percent within the next two years. The economist told CNBC’s Joumanna Bercetche on Thursday that a slowdown in growth was a “near certainty” before adding “the recession risk is nearly 50 percent over the next two years, maybe slightly less.”...
The dispute between the U.S. and China over trade deficits and surpluses is rather trivial compared to the broader philosophical differences between the world’s two biggest economic superpowers, Bridgewater Associates founder Ray Dalio told CNBC on Thursday. “The trade war, I think, can be worked out,” the billionaire investor Dalio said in a “Squawk Box”...
U.S. import prices increased more than expected in October, boosted by a surge in petroleum and food prices, but underlying imported inflation pressures remained tame amid a strong dollar. The Labor Department said on Thursday import prices rose 0.5 percent last month after a downwardly revised 0.2 percent gain in September. Economists polled by Reuters...
U.S. retail sales rebounded sharply in October as purchases of motor vehicles and building materials surged, likely driven by rebuilding efforts in areas devastated by Hurricane Florence. The Commerce Department said on Thursday retail sales increased 0.8 percent last month also as households bought electronics and appliances. Data for September was revised down to show...
The number of Americans filing applications for jobless aid unexpectedly rose last week, but claims for three big states were estimated because of Monday’s Veterans Day holiday, which could have influenced the data. Initial claims for state unemployment benefits increased 2,000 to a seasonally adjusted 216,000 for the week ended Nov. 10, the Labor Department...
Hedge fund billionaire Ray Dalio argued Thursday that the Federal Reserve has raised rates to a point where they’re hurting asset prices. The central bank needs to start looking at monetary policy’s impact on asset prices before economic conditions, Dalio said, adding he would err on the side of caution on rate hikes. The Fed...
U.S. consumer prices increased by the most in nine months in October amid gains in the cost of gasoline and rents, pointing to steadily rising inflation that likely will keep the Federal Reserve on track to raise interest rates again next month. The Labor Department said on Wednesday its Consumer Price Index rose 0.3 percent...