Home Sales Trend is Worrisome Last Update: 25-Jun-07 10:12 ET
The housing market remains weak. Existing home sales for May were essentially flat at -0.3%. That was in line with expectations, but it still represents a very low level of sales. Sales are 10.3% lower than a year ago and the lowest level in three years. The median price on existing homes sold was down 2.1% from a year ago, continuing the decline of recent months.
The outlook is not good. The inventory of unsold homes rose to a very high 8.9 months supply. Mortgage rates have also risen in recent weeks with the backup in the 10-year note yield. This will hurt demand in the months ahead. A higher level of supply, and lower demand is obviously not good for the housing market. The housing market remains a significant problem for the overall economic outlook.
--Dick Green, Briefing.com
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