Housing Market Already in Recession...
...Says Merrill Lynch
(From the Christian Science Monitor)
"In the past, of 10 slowdowns in home building since 1959, seven have preceded broader recessions for the economy as a whole. But there was a significant lag time - often about 20 months - between the moment when construction started to ebb and when the economy entered recession, according to research by Merrill Lynch."
"Most economists aren't forecasting recession for the US economy next year, but the prospect of more interest-rate hikes raises that risk."
'"We think it's a pretty safe assumption that the housing market has already entered into a recession," Merrill Lynch economists wrote in a recent analysis."
"Builders are starting new homes at a pace that has plunged at an annualized rate of 56 percent in the past three months, they note. That's similar to what occurred early in 1991, when the economy was in recession."