1. Daily Economic Update
Daily Economic Update
September 20, 2010
 The National Association of Home Builders/Wells Fargo Housing Market
Index stayed unchanged since last month, at 13. A reading above 50 would
suggest that sales expectations as perceived as positive, however the index
has not been above 50 since April 2006. The traffic of prospective buyers
5 p p p y
fell one point to 9, reflecting home buyers limited strength. The sales
expectations for next six months also remained unchanged, at 18.
 Flow of Funds data released on Friday by the Federal Reserve indicated
household wealth fell 2.8 percent in the second quarter 2010. Household
net worth, which is the difference between the value of assets and
liabilities, was estimated at $53.5 trillion, down $1.5 trillion from the
li biliti ti t d t t illi d t illi f th
previous quarter. This was the first decline since March 2009. Declines in
the value of financial assets, particularly stocks and mutual funds,
accounted for much of the decline. Stocks alone were down $1.9 trillion to
accounted for much of the decline Stocks alone were down $1 9 trillion to
$14.9 trillion.
Produced by NAR Research

2. Daily Economic Update
Daily Economic Update
September 20, 2010
 Home mortgage debt also fell at an annual rate of 2.25 percent, compared
Home mortgage debt also fell at an annual rate of 2 25 percent compared
with a 4.25 percent drop in the previous quarter. The fall in mortgage debt
reflects continued increase in foreclosures and tendency towards renting
instead of purchasing a home. Consumer credit fell similarly 2.25 percent
p g y 5p
annually.
 On the other hand, owners' equity in household real estate increased at
q y
annual rate of 1.1 percent, to 17.118 billion. This is 0.3 percent increase since
the previous quarter, and 2.6 increase year‐over‐year. Since household
equity is the difference between the household real estate assets and
mortgage debt, the increase in housing wealth likely also reflect increased
t d bt th i i h i lth lik l l fl t i d
foreclosure sales which reduced mortgage debt.
Produced by NAR Research