Interest Rate Roundup

Tuesday, March 06, 2007

January pending home sales disappoint

January pending home sales fell 4.1% from December, according to the National Association of Realtors. The Bloomberg forecast called for a drop of 1.2%. In other words, the decline was more than three times worse than expected. Regionally, sales declined in the Midwest (-2.4%) and South (-11.7%), rose in the Northeast (+9.3%) and were relatively unchanged in the West (+0.2%). On a year-over-year basis, pending home sales were down 8.9%.

This report confirms that the housing market remained weak in early 2007. We're entering the key spring selling season with elevated home inventories, a lack of speculative demand, and now, a tightening of mortgage lending standards. All of these factors tell me this spring will ultimately prove another lackluster one for home sales. Consequently, further declines in home prices are likely.


Post a Comment

<< Home

Site Meter