Sales of new U.S. homes declined more than projected in July to the lowest level in five months, indicating the industry is struggling to stabilize two years into the economic recovery.
Purchases fell 0.7 percent to a 298,000 annual pace after a 300,000 rate in June that was slower than previously estimated, figures from the Commerce Department showed today in Washington. The median projection in a Bloomberg News survey of economists called for a 310,000 rate in July.
More on housing sales from Calculated Risk.
By itself, a small drop in new home sales won’t be a big issue but it is one more piece in an overall pattern showing that our economy is stalling. The stock market is down significantly, individual’s economic confidence is at a new low and official unemployment remains stuck around 9 percent.
Given how heavily Obama’s job approval is tied to people’s economic experience, without strong economic growth he is going to have serious trouble winning re-election and almost all signs are pointing to strong growth being unlikely.
It is long past time for Obama to try some bold experimentation to get the economy moving, and in doing so, save his re-election campaign.