Research by economists Karl Case and Robert Shiller, founders of the home-price indexes that bear their names, concluded that changes in housing wealth have a much bigger impact on spending than do variations in financial wealth. The volatility of stock prices and the fact that equity holdings are concentrated among the rich are behind the difference, according to Bloomberg.
Fed pressured by diminished housing wealth
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Pending home sales post a modest gain in March: NAR
Pending home sales increased by 3.4% from February to March despite rising mortgage rates, the National Association of Realtors reported.