A recent survey of the state of US house prices has revealed a record downturn in house prices for Q3 (April – June) of this year. US house prices are estimated to be worth a staggering 15.4 percent less than the same time last year.

These figures are the latest indication that the US housing climate is still in trouble, and in a separate report; the government released data showing that the sale of new houses is still close to a 16 year low.

The dollar fell against the euro and yen, as worries about the state of the US financial market due to earning reports from banks being published this week.

The dollar could also face a more worrying period as a glut of US economic news comes out this week. Traders are anxious to hear speeches from the Philadelphia Fed today and New York Fed and the SEC chairman on Thursday in front of a House Financial Committee.

Key US data out this week includes June’s existing home sales on Thursday and new home sales data on Friday.

The Federal Reserve has auctioned more than $7bn in securities, which it hopes that it will boost the credit markets.

The Federal Reserve last year started a succession of auctions to help shore up liquidity after the credit crunch. The central bank is hoping to stop the housing slowdown from turning into wider recession.

In exchange for the securities, investment firms can obtain a short-term cash loan by trading it with their more risky investments, including mortgage backed risks.

Happy New Year from the team here at Forex Daily.
The start of the New Year brings expectations from many such as investors,creditors and home owners. The US in particular is looking for a good turnaround on mortgages and housing this year.
The recent credit crunch has caused fear among many but there are already signs that the situation is picking up and that the markets will soon be a lot stronger.