Economist's Commentary: July 7, 2008
Quick Take on the Economy: July 7, 2008
By Jessica Lautz, Senior Research Analyst
Oil Prices
- Crude oil prices dropped $4.28 a barrel today to $141.01 in the New York Mercantile Exchange.
- A less aggressive interest rate hike from the European Central Bank help strengthen the U.S. dollar. Because oil is priced on the U.S. dollar, a stronger dollar leads to a fall in oil prices.
- Though a relief, the price is still sky high. Today's price is about double last year's price.
- High oil prices drag down economic growth while low prices stimulate growth.
What does today's data mean for REALTORS® and consumers?
- Consumers are very concerned about the energy efficiency of their home purchases. Below are two links to help in save money and about consumer preferences for Green home features:
- Save money
- Consumer preference
Daily Forecast Update
- NAR's monthly official forecast as of June 9th (48K PDF)
- GDP Q2: 0.6%
- GDP Q3: 2.0%
- Unemployment rate by election time: 5.8%
- Average 30-year fixed mortgage rate in December: 6.6%
- Average 30-year fixed mortgage rate by mid-2009: 6.7%
- The next Fed policy change: a rate hike in December 2008.
This is one in a series of commentaries by the Research staff of the National Association of REALTORS®. Read more commentaries >
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