May pending home sales plunge to record low.
If you're looking for a silver lining in housing, you aren't going to find it here. Demand has fallen off a cliff in the wake of the tax credit expiration, with pending sales falling by the biggest margin ever to the lowest level ever. The latest report comes in the wake of data showing large declines in new home sales and builder confidence.
What's the problem? Aren't homes cheap? Aren't mortgage rates at record lows? The answers are "yes" and "yes." But the overall economy is rolling over, consumer confidence is slumping and, most importantly, we just aren't creating jobs. It sounds simplistic, but it bears repeating: "No job = No house." And with so many Americans unemployed or underemployed, the housing market is going to keep hurting.