US house prices dropped 22.8 per cent over the last three months as American consumer confidence slumped.
Wall Street economists described the statistics as “incredibly awful” and indicated that the likelihood of the US Federal Reserve raising interest rates tomorrow was very remote.
However, the housing recession – which shows no sign of abating – record petrol prices and rising food costs have conspired to offset the impact of the fiscal stimulus package.
Weak US house prices fall 23pc – The Australian, 25th June 2008.