FDIC: Housing to Take Back Seat in U.S. Economy

Published on:
12 September 2006 at 10:21 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00024948-fdic-housing-to-take-back-seat-in-us-econ/

The torrid pace of home appreciation in the U.S. in the past four years was a main driver for economic expansion recently. But as the housing market cools, the FDIC expects housing to be a backseat passenger in the economy in the second half of 2006, according to a story by Reuters.

In fact, many banks and lenders are shifting resources to commercial lending in anticipation of further slowing in the housing sector.

Richard Brown, chief economist at the Federal Deposit Insurance Corp., told Reuters, ?Clearly, the housing market activity is slowing down. Affordability has just caught up with this market in many cases.”

For this complete story, please visit FDIC: Housing to Take Back Seat in U.S. Economy.