Mon Oct 28, 2013, 01:40 PM
Purveyor (29,433 posts)
Pending Sales of Existing Homes Slump by Most in Three Years
By Lorraine Woellert - Oct 28, 2013
Fewer Americans than forecast signed contracts to buy previously owned homes in September, the fourth straight month of declines, as rising mortgage rates slowed momentum in the housing market.
The index of pending home sales slumped 5.6 percent, exceeding all estimates in a Bloomberg survey of economists and the biggest drop in more than three years, after a 1.6 percent decrease in August, the National Association of Realtors reported today in Washington. The index fell to the lowest level this year.
Mortgage rates last month reached two-year highs and some homeowners are reluctant to put properties up for sale as they wait for prices to climb, leading to tight inventories. Those forces are pushing some would-be buyers to the sidelines and slowing the pace of recovery in real estate, giving Federal Reserve policy makers reason to delay reducing stimulus when they meet this week.
“We’ll be in this weakness for a little bit, maybe even going into the fourth quarter,” said Yelena Shulyatyeva, a U.S. economist at BNP Paribas in New York, the second-best forecaster of pending home sales over the past two years, according to data compiled by Bloomberg. “This is a clear signal to the Fed as to what happens when you try to play with nascent housing recovery. The minutes indicated they were really concerned about it.”
Read more: http://www.bloomberg.com/news/2013-10-28/pending-sales-of-existing-homes-slump-by-most-in-three-years.html
5 replies, 959 views
Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Pending Sales of Existing Homes Slump by Most in Three Years (Original post)
|Harmony Blue||Oct 2013||#2|
|Dawson Leery||Oct 2013||#5|
Response to Purveyor (Original post)
Mon Oct 28, 2013, 01:46 PM
Harmony Blue (3,978 posts)
2. The obstacles for a young single/couple or family
to buy a home now are staggering. There is going to be a lot of empty homes in the coming years.
Response to L0oniX (Reply #3)
Mon Oct 28, 2013, 03:10 PM
Berlum (7,044 posts)
4. Yep - the Republicons crapped in America's real estate bed
with their evil, misbegotten anti-American efforts to shut down the US of A.
Voters -- and home buyers and sellers -- will remember.