U.S.: Pending home sales fell in July to lowest level since September 2001

[Purveyor]

Source: Associated Press

WASHINGTON: Pending sales of existing homes in the U.S. fell in July to the lowest level in nearly six years as the mortgage market's troubles made it tough for many borrowers to finalize home purchases.

The National Association of Realtors said its index of pending home sales for July fell 16.1 percent from a year ago and 12.2 percent from the prior month.

July's reading of 89.9 was the second lowest ever for the index and its lowest since September 2001, when the economy was jolted by the terrorist attacks. A reading of 100 is equal to the average level of pending sales activity in 2001, when the index began.

Lawrence Yun, the trade group's chief economist, said in a statement that some home purchases aren't closing because mortgages "have been falling through at the last moment."



Read more: http://www.iht.com/articles/ap/2007/09/05/business/NA-FIN-US-Pending-Home-Sales.php

[dbt]

1. "The lowest level since 2001," "lowest in the last four years," etc, etc.

J'ya ever notice how the Corporate Media and/or the Cooked Stats of the bu$h regime cannot/DARE not make a comparison to the Clinton Era when it comes to economic progress? Reckon why that is...

:evilgrin:

[beberocks]

2. Because many lenders were STILL giving money to those who can't repay it.

I'm tired of hearing that people can't get no-money down jumbo loans anymore so they can't purchase a McMansion. Most of the real estate boom was built on criminally (IMO) easy-to-get credit. This is going to be the fallout for years to come IMO.

[Purveyor]

3. I laugh at the CNBC talking-heads this morning telling home sellers they have to lower the price

if they want the house to sell.

What is never mentioned is that many can't afford to lower the price as they have squeezed every cent of now non-existent equity out of the property.

If they lower the price, the seller will have to bring money they don't have to the closing.

This is only started to get ugly considering the jobs reports IMHO.

[David__77]

4. Those people should not sell perhaps.

It's going to be years before a breakeven point is achieved for many of these people. Banks have been willing, in many cases however, to approve short sales. Many of the homes for sale in my area are short sales.