Red Flashing Light in the Housing Market Could Spell Economic Trouble

An economic forecaster is expecting home price growth to continue slowing, and even reversing, and he thinks that could affect the overall economy. CNBC reports

The U.S. economy is growing at a healthy pace, the labor market is its tightest in years and consumer confidence hasn't been this high since 2000.

But one warning sign of trouble could be flashing in the housing market, according to forecaster Lakshman Achuthan.

"Our leading home price index has made a downturn that it hasn't made in a long time," Achuthan, co-founder of the Economic Cycle Research Institute, told CNBC's "Trading Nation" on Wednesday. "The last time it was this weak … was in 2009 coming out of the last recession, and this leading index in 2006 really did call the housing bust."

One warning sign in housing market could spell trouble for economy from CNBC.