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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