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| Version 2 | Version 3 |
|---|---|
| US housing woes 'far from over' | US housing woes 'far from over' |
| (about 2 hours later) | |
| The full impact of financial market turmoil "has yet to play out", a top US official has said. | The full impact of financial market turmoil "has yet to play out", a top US official has said. |
| Treasury undersecretary for domestic finance Robert Steel said that the upheaval caused by housing market troubles was far from over. | Treasury undersecretary for domestic finance Robert Steel said that the upheaval caused by housing market troubles was far from over. |
| His comments came as the US Beige Book report showed housing activity had been hurt in most of the country, showing continuing weakness in the market. | His comments came as the US Beige Book report showed housing activity had been hurt in most of the country, showing continuing weakness in the market. |
| Other data showed future US home sales fell to a six-year low in July. | Other data showed future US home sales fell to a six-year low in July. |
| The data sent the Dow Jones index down by about 1.1% while the Nasdaq closed 0.9% lower. | |
| Mr Steel was speaking at a Senate hearing into how people may be hit by market turbulence. | Mr Steel was speaking at a Senate hearing into how people may be hit by market turbulence. |
| 'Ultimate impact' | 'Ultimate impact' |
| Last week President George W Bush set out plans to help people with sub-prime mortgages meet their payments and avoid losing their homes. | Last week President George W Bush set out plans to help people with sub-prime mortgages meet their payments and avoid losing their homes. |
| The ultimate impact of these events on the economy is yet to play out Robert Steel, Treasury undersecretary | The ultimate impact of these events on the economy is yet to play out Robert Steel, Treasury undersecretary |
| They included making it easier for some people with good credit ratings who have fallen behind with repayments to refinance their loans. | They included making it easier for some people with good credit ratings who have fallen behind with repayments to refinance their loans. |
| However the Democrats are expected to expand the proposals as anxiety among Americans grows. | However the Democrats are expected to expand the proposals as anxiety among Americans grows. |
| The deterioration in the sub-prime mortgage market, resulting in a wave of foreclosures, has triggered global stock market instability. | The deterioration in the sub-prime mortgage market, resulting in a wave of foreclosures, has triggered global stock market instability. |
| It has also heaped pressure on the US Federal Reserve to reduce interest rates, making life easier for companies and homeowners, when it meets later this month. | It has also heaped pressure on the US Federal Reserve to reduce interest rates, making life easier for companies and homeowners, when it meets later this month. |
| "This process is far from over," Mr Steel told the committee. | "This process is far from over," Mr Steel told the committee. |
| "The ultimate impact of these events on the economy is yet to play out." | "The ultimate impact of these events on the economy is yet to play out." |
| 'Slowing growth' | 'Slowing growth' |
| The Beige Book report said that outside of real estate, the turmoil had only a limited affect on the US economy. | The Beige Book report said that outside of real estate, the turmoil had only a limited affect on the US economy. |
| Reports from the 12 Federal Reserve districts indicated that economic activity continued to expand in the 17 July to 27 August period when the survey took place. | Reports from the 12 Federal Reserve districts indicated that economic activity continued to expand in the 17 July to 27 August period when the survey took place. |
| However the pace of growth was described as moderate, modest, mixed or slowing. | However the pace of growth was described as moderate, modest, mixed or slowing. |
| In separate data the National Association of Realtors' index of pending home sales, a tally of sales expected in the next two months, hit its lowest level since 2001. | In separate data the National Association of Realtors' index of pending home sales, a tally of sales expected in the next two months, hit its lowest level since 2001. |
| The figure was down 12.2% on the month before and 16.1% lower than July 2006. | The figure was down 12.2% on the month before and 16.1% lower than July 2006. |
| The industry body said the fall was partly due to mortgages falling through because of the current credit squeeze. | The industry body said the fall was partly due to mortgages falling through because of the current credit squeeze. |
| But it emphasised that the problems were concentrated in the sub-prime loan market, where loans are offered to those with patchy credit histories. | But it emphasised that the problems were concentrated in the sub-prime loan market, where loans are offered to those with patchy credit histories. |
| It added that the majority of prospective homebuyers had not encountered any problems. | It added that the majority of prospective homebuyers had not encountered any problems. |
| Our members are telling us some sales contracts are not closing because mortgage commitments have been falling through at the last moment Lawrence Yun, National Association of Realtors | Our members are telling us some sales contracts are not closing because mortgage commitments have been falling through at the last moment Lawrence Yun, National Association of Realtors |
| Analysts are looking to the Fed's Beige Book, a gauge of regional economic trends published later on Wednesday, to provide further evidence on the current economic situation. | Analysts are looking to the Fed's Beige Book, a gauge of regional economic trends published later on Wednesday, to provide further evidence on the current economic situation. |
| The NAR said the latest sales figures for previously owned homes, which were weaker than analysts had predicted, suggested lenders were taking a tougher stance on home loans. | The NAR said the latest sales figures for previously owned homes, which were weaker than analysts had predicted, suggested lenders were taking a tougher stance on home loans. |
| "Our members are telling us some sales contracts are not closing because mortgage commitments have been falling through at the last moment," said Lawrence Yun, the Association's chief economist. | "Our members are telling us some sales contracts are not closing because mortgage commitments have been falling through at the last moment," said Lawrence Yun, the Association's chief economist. |