Wachovia Economics Group has released it’s Monthly Outlook and David Bell, Vice President of Business Banking, had these comments about the report:
With all the recent activity in the stock market this past week, I have highlighted a few comments from our economic team below.
- We believe real GDP growth will be held back the first half of 2007 due to the ongoing unwinding of the housing boom and some slowing in consumer spending.
- By mid year, the drag from housing will diminish and the Federal Reserve should hold rates unchanged.
- Much of the deterioration in the subprime mortgage market is in loans issued in 2006. This leads us to believe that faulty underwriting and mortgage fraud have more to do with the rise in delinquency rates than a general deterioration in credit quality. Delinquency rates in subprime auto loans and credit cards do not show anywhere near the deterioration as in mortgages.
Special thanks toDavid Bell of Wachovia for providing this report. Contact David for all of your commercial financing and business banking needs at 770-618-1625.
Download the full .pdf file for Wachovia Economic Group Monthly Outlook.
