The second major wave of mortgage foreclosures following the one which spurred the first financial crisis in 2008 should be kicking into high gear in the following months. On the other side of that sword is the housing sales indicators, which aren’t looking to good either.
The sale of existing U.S. homes sank 27.2% in July — the biggest one-month drop ever — largely because of the phase-out of a federal tax credit, according to an industry trade group.
The National Association of Realtors said existing-home sales fell to a seasonally adjusted annual rate of 3.83 million in July from 5.26 million the month before. Sales of single-family homes fell to the lowest rate in 15 years.A year earlier, existing home sales totaled 5.14 million in July.
Inventories of unsold homes rose 2.5% to 3.98 million, representing a 12.5-month supply, the highest level since at least 1999, the trade group said. And the supply of unsold single-family homes reached its highest rate since 1982.
– Jeffry Bartash, MarketWatch
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