No Housing Turnaround for Two Years?
Home sales continued to slide in June, stoking fears that the slowdown could last at least until 2009
First, it was the second half of 2007. Then it was 2008. Now analysts are saying the national housing market may not rebound until 2009
On July 25, the National Association of Realtors reported that sales of existing homes fell 3.8% in June to a seasonally adjusted annual rate of 5.75 million units, contributing to the bleak-and-getting-bleaker outlook.
The NAR believes consumer psychology is to blame. “Homebuyers have been getting mixed signals about the housing market, which is causing some of them to hesitate,” said NAR Senior Economist Lawrence Yun in a statement. Rising mortgage rates and tighter lending standards aren’t helping, either, Yun said. According to Freddie Mac, the national average commitment rate for a 30-year fixed-rate mortgage rose to 6.66% in June, from 6.26% in May.