A lower interest rates environment to sustain growth

Latest data confirmed that in the United States housing is not out of the dust yet and could inspire the Federal Reserve to cut rates by at least 25 basis points to 5.00% during the meetings of September or October. In fact, existing home sales fell a tiny 0.2% to an annualized 5.75 million units in July (5.70 million expected). However, inventories of unsold housing jumped 5.1% or 9.6 months of supply at the current sales rate and housing prices are continuing their decline. The median price is down 0.6% from the median price a year ago, which represents the twelve straight month of decline on year over year basis.