Stock Market Soars While Consumer Spending Tightens

According to Associated Press, consumer confidence is down. High gas prices, the specter of higher interest rates and faltering home sales have Americans worried.

The National Association of Realtors reported on Tuesday that sales of existing homes plunged in March by the largest amount in nearly two decades. The group said that sales of existing homes fell by 8.4 percent in March, compared to February. It marked the biggest one-month decline since a 12.6 percent drop in January 1989.
The report also showed an eighth straight fall in median home prices, the longest such period of declining prices on record. The median price fell to $217,000, a drop of 0.3 percent from the price a year ago.

Consumer spending accounts for two-thirds of all U.S. economic activity.

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