Pending Home Resales Drop To Lowest Level Since September 2001

Pending sales of existing homes dropped for the third straight month as troubles in the mortgage industry continue to disrupt the housing market. Figures released today show a 3.5% drop in May, following April’s drop of 3.2% and March’s drop of 4.5%.

May’s figures are down 13.3% off last year’s numbers, according to the AP. Economists had been expecting a rise in May, but didn’t get it.

According to Bloomberg, mortgage applications are up, but it might be due to a flood of subprime mortgage holders attempting to refinance to avoid foreclosure.

U.S. Pending Home Resales Drop to Lowest Since 2001 (Update2) [Bloomberg]
Pending Home Sales Drop 3.5 Percent [MSN Money]
(Photo: iowa_spirit_walker)

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  1. Sudonum says:

    I think this is more a result of people wanting to make sure their particular market has hit “rock bottom” before buying property. One of the markets I’m watching still hasn’t had any foreclosures come up for sale. Until they do I know the price will go lower.

  2. Chicago7 says:

    I know I’m waiting.

  3. zolielo says:

    I too have done the forecast and from the data that I have there should be a continued slide until about the 4th quarter nationally. Locally, your mileage will vary. :)