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No "dramatic' action pondered
to cut trade deficit: gov't official
Commerce Secretary Don Evans opposes "dramatic changes" in order to slash the booming U.S. trade deficit. Evans said job growth was more important than the deficit and noted the U.S. did fine in that department in the last decade despite the relentless red trade ink. Exporters -- especially manufacturers and farmers -- say the soaring dollar is pricing them out of world markets.
White House economic adviser Lawrence Lindsey, in an article called "Hands Off The Dollar!" for International Economy magazine, defended the administration's support for a strong dollar.
Housing affordability drops: NAR
The National Association of Realtors' housing affordability index fell to 138.2 in the second quarter from 142.9 in the first. Lower interest rates and higher incomes couldn't offset the relentless climb of home prices. In the second quarter, the median price of a single-family home was $146,900, mortgage rates averaged 7.15% and a family's median income was $52,675. That compares with the first quarter: The median home price was $139,700, mortgage rates averaged 7.21% and the median family income was $52,055.
The Mortgage Banker's Association's loan application index eased to a still-high 507.2 in the week ended Friday.