Existing Home Sales Decline in May
June 28, 2006 — Sales of existing homes in the U.S. fell in May to a 6.67 million annual rate, a 1.2% decline from April, the National Association of Realtors said Tuesday. Meanwhile, an improved outlook for the economy’s performance over coming months helped lift U.S. consumers’ mood in June, amid a mixed outlook for…
June 28, 2006 — Sales of existing homes in the U.S. fell in May to a 6.67 million annual rate, a 1.2% decline from April, the National Association of Realtors said Tuesday. Meanwhile, an improved outlook for the economy’s performance over coming months helped lift U.S. consumers’ mood in June, amid a mixed outlook for the jobs market. NAR chief economist David Lereah said rising interest rates are affecting home sales. “Although mortgage interest rates remain historically low, the uptrend in interest rates this year is affecting those buyers who are at the margins of affordability,” Mr. Lereah said. The level of resales in May was above Wall Street expectations. Analysts predicted a 6.64 million rate of sales of previously owned homes. Analysts said this is a classic pattern for a cooling housing market with sales starting to lag under the impact of rising mortgage rates. Mr. Lereah said he expected sales to fall by 6.8% from last year’s record pace.
Existing-Home Sales Post Decline [Real Estate Journal]
What about price behavior over same period?
my mortgage rate-watch weekly email now starts with a “7”, don’t underestimate the psychology.
Brokers like to say: oh when I started out in this business mortgage rates were 15% and people were buying! But new york was coming out of a 70s recession then, and $3m bought you an entire skyscraper! With property values as tight as a drum now every +0.05% change hurts.