All right some fresh new numbers from The Bureau of economic analysis which Sounds like a very fun place to work I Would imagine but there have some good News it shows the US economy grew in the Second quarter of this year the revised Numbers show gross domestic product Jumped by 3% corporate earnings Increased to 57.6 billion this as Freddy Mack is reporting that mortgage rates Dropped even more this week to 6.35% CBS News senior business and Tech Correspondent Joe Lin Kent joins us now From Los Angeles so Jing explain to us What these revised numbers say about the State of the US economy and should we Continue to think that the FED is going To cut interest rates then well firstly I just like to say that the Bureau of Economic analysis are a bunch of really Smart people who put out great data for Us so I do love them I'm sure it's Really fun to there they like the party Oh they like the party there at the Bureau ecomic analis they know they know More about the economy than we will know About the economy at this exact juncture And they put out some new data today Essentially what we're seeing is things Are going in the same direction that the FED is looking for so you can see that You know if you take a look at the Latest reading of GDP it was up from That initial estimate of 2.88% it was
Driven by good personal spending we see We also saw you know this is consumption Investment areas like that nothing too Off the charts so to speak but a good Sign when it comes to looking at where The economy is right now now given the Fact that we had you know a jobs report Last month that was pretty challenging And surprising to the market and now as We look ahead to that critical Federal Reserve meeting in mid-september when it Comes to your interest rates when it Comes to those new car loans and Mortgages and credit card debt and an Open invite to anyone from the Bureau of Economic analysis to join us on CBS News 247 anytime we'll always take you but Jooling what's interesting is red Fin's Reporting that despite a drop in Mortgage rates home sales have yet to Improve in fact the company's reporting A nearly 7% drop in pending home sales This month that's the biggest drop we've Seen in nearly a year what's up There people are holding off and so what We see are a couple of different factors Here even though mortgage rates are Coming down there's this sense that the Federal Reserve is very likely to cut The Benchmark interest rate of next Month in mid-september right so you have Some folks a lot of people who are just Sitting on the sidelines they're still Stressing and they're still waiting so
You have that reality then you also have The National Association of realtor Settlement that we've been covering as Well and if you look at that it Certainly is like putting some confusion Into the market of like how do I search For a home do I need to be signing Paperwork with an agent a realtor and How that might be keeping people on the Sideline so even though that mortgage Rate continues to move down it's a great Sign getting more people off the Sidelines you also have inventory that Remains very tight in a lot of big Cities and so when you have inventory Not a lot of homes going up for sale you Have the golden handcuffs on a lot of Boomers not letting go of those homes That so many people want to be buying Maybe starter homes as well tight in the Market that all contributes to this so It's all contingent on you know what the Confidence of the consumer is the buyer The person who wants to either sell that Home or purchase that home so there's Been a lot going on in the real estate Market that we're keeping an eye on I Have a feeling once we know come September 17th what Federal Reserve Chair Drome Powell is going to announce When it comes to a rate cut then you're Going to see a lot more activity and People thinking okay this is the new Reality that I'm dealing with this is
What I can afford to pay so is new Activity better because we expect that The fed's going to cut interest rates Next month that's just about in two Weeks from now um two and a half weeks Really but we saw the housing market get A boost in the UK when they cut rates so If you're looking to sell your home Should you should you wait until these Interest rates actually come down uh or Should you should you try and do it now When there's a dir of Supply so you can Potentially get more for your home I Think it really depends on where you Live and what you need and what you're What you're trying to get out of this Situation it's so situationally Dependent right and I know that that's Not a not a great answer but basically When you look at what's happening in the Market this is the Talk of the Town Especially here in Los Angeles places Like the Bay Area in California and all Across the country and cities I've been Traveling to covering this issue a lot Of people deciding okay well if if rates Come down then maybe I can afford more Maybe I have a better chance of getting More of what I want when it comes to That home situation whether you're Buying for the first time or you're Selling but at the same time demand is Likely to Surge I don't think that's a Unfair assumption at this point so if
You take a look we have had no changes That chart is just really boring and Tells you everything you need to know And so it's Flatline so the question now Is it is it a quarter point is it a half Point what we saw from Jerome Powell the Fed chair last week in Jackson whole is It is all but certain he basically said The most important four words that I've Heard in a long time the time has come All right jol and Kent thank you so much Thanks
