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New Home Sales Hits 15 year low!
News Headlines (http://www.cnbc.com/id/38830968 - broken link)
Sales of previously owned U.S. homes dropped more steeply than expected in July to their lowest pace in 15 years, an industry group said Tuesday, implying further loss of momentum in the economic recovery.
It seem's that we have hit rock bottom in the housing industry and it is either going to get better or worse.
The worst part is - that even if we sold all the houses that were on the market today and no other houses entered the market, at the present rate, it would take 12 1/2 months just to sell all the houses on the market.
That means that every time someone cannot make their payment and abandons their house that is one more house on the market that can't be sold. In time it will get so bad that they will be giving them away just to get rid of them.
The prime interest rate set by the federal government was also dropped to a all time record low of 4.54%
What that means to you and me is any money that we have in the bank, that we had saved, will now be paid less interest - and so the money you have saved in the bank is now worth less then it was in interest and pretty soon we will be paying the banks for the privilege of keeping our money for us - just like Jed Clampett on the Beverly Hill Billies.
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