US Housing market begins revealing secrets today

Unlike yesterday, the US economy holds on its economic calendar a few occupied slots where the world's largest economy will reveal data concerning its tumbling housing market, which could give some perspective regarding to the future economic outlook of the US.

The housing figure due for release today is the Existing Home Sales for the month of July, the number of existing home sales during July is expected to fall from the previous 5.37 Million and reach 4.65 Million, by percentage and on monthly basis existing home sales is expected to fall by 13.4% continuing the previous fall of 5.1%.

Previous data and figures relating to July showed that the US housing sector is still seeking any sort of stability in the midst of a slowing recovery process that might come to a halt. The US economy recorded a slump in GDP growth rate in this year's second quarter after the expiry of some governmental programs that included tax cuts and so on.

The US housing sector will find stability a very hard situation to sustain, where the brutal unemployment rate and impossible credit conditions in addition to the rise in foreclosures will all weigh down on growth.

This week holds further housing data, as on Wednesday tomorrow the US economy will reveal its New Home Sales figure during July, where it is expected to rise by 3.0% and reach 340 thousand, compared to the previous rise of 23.6% reaching 330 thousand housing unit.

A program that expired by the start of second quarter helped very much the housing sector, it was a program that offers tax cuts for the first time home buyers, it was a huge success proven with increased numbers. The program was a huge success being able to boost the housing sector in the midst of tight credit conditions and high unemployment.

In the capital markets, US future indices fall in pre market trading to extend yesterday's losses, where the DJIA fell by 0.7% to reach 10084 points, the S&P 500 fell by 0.8% to reach 1057.30 points, the NASDAQ 100 fell by 0.8% to reach 1795.75 points, (Data as of 10:15 London).