Housing may lead U.S. Spending Upwards

There is the potential for household purchases to support a growth in spending. The deflating prices of homes has had a negative impact on the wealth effect spending formula. Housing has been a drag on this economic measurement since 2008. Signs of the housing recovery were reflected in rising home prices, and the highest confidence among U.S. homebuilders in 6 years. Michelle Meyer, senior economist at Bank of America, sees housing adding a positive .1 percentage point of spending, as opposed to a  negatvie  .9 percentage point drag in the past.