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]