There are certain indications that are showing that US economy is probable to take turn toward worse situation such as near 10-year low in US home sales, lowering consumer spending, and dropping property values.

According to poll in July total of 5.435 million new and existing homes were purchased while in June this rate was 5.39 million which was most feeble since at least 1999. In July the spending rose almost 0.3 percent that is approximately half of its last month gain.

There is a negative impact of high borrowing cost and strict lending rules on demand that showed that real-estate downturn will continue into next year. Fall in home prices resulted in fading equity and Americans are losing their interest in spending as wages are not increasing in match to inflation rate.

According to the middle estimation of economists surveyed ahead of a Commerce Department new houses purchases dropped 0.9 percent to an annual rate of 525,000 while March’s 513,000 speed was lowest since 1999.