Economy Solid Despite Housing Slowdown and Foreclosure Activity

(EMAILWIRE.COM, April 02, 2007 ) SAN FRANCISCO, CA – Consumer spending in the United States rose substantially in February and economists see this as a sign that the economy is in good shape despite a few lingering aches and pains. Analysts were surprised as consumer spending rose .6%, which was nearly twice what had been expected.The Commerce Department indicated that personal income rose by .6% as well. This figure was also double what many analysts expected.Spending on construction rose also by almost .3% in February. This number had been declining or steady since March of 2006. This figure reflected primarily commercial construction projects such as state and local government buildings, shopping center projects, and hotels.Home construction on the other hand continued its long string of declining figures.Foreclosure expert, Patrick McGilvray, J.D., CFP®, president of http://www.TheHomeBuyingCenter.com commented on this phenomenon, “it looks like our overall economy has a very solid foundation, but my company is getting increased numbers of calls from people who want to sell their houses fast to avoid being foreclosed on. The single-family home sector, especially homeowners with subprime mortgages, is suffering from too much supply and not enough demand.”Analysts still are looking for the economy to slow down in the first quarter of 2007, and then they anticipate a rebound in the second quarter.The Fed on InflationFederal Reserve Chairman Ben Bernanke reported to Congress this past week that inflation continued to be the central bank’s main concern. He also mentioned that risks to overall economic growth have emerged. Because of this he noted that he and the other Federal Reserve regulators might soon lower interest rates to help prevent a stall in the economy.Bernanke mentioned that the prolonged housing downturn and a slowing economy might preclude businesses from making investments and that growth was a major part of his focus.Contact:Patrick McGilvray, J.Dhttp://www.thehomebuyingcenter.compatrick@thehomebuyingcenter.comTel: 916-920-3278###This press release was issued through GroupWeb EmailWire.Com. For more information on press release distribution, go to http://www.emailwire.com.

Patrick McGilvray, J.D.
Patrick McGilvray, J.D.

patrick@thehomebuyingcenter.com