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Single-family home sales decreased 4.3% to 1.072 million units (seasonally
adjusted annual rate) June sales were revised up to a -0.9% (1.12m) from a previous 3.0%
Consensus was for a modest 2.7% drop in July sales — so the negative 4.3% was quite the surprise — at least to those paying attention.
The big whackage showed up in the year-over-year numbers, with sales plummetting 21.6% since July 2005.
Amazingly, this only brings sales back to where they were in the beginning of 2004 — which at the time, were a record high. Now, they are a dissappointment (at least to people who believe cyclical phenomena never have down cycles).
While mortgage costs are rising on a monthly basis, the recent rally in the bond market should help lower rates. A 30-year
mortgage was about 6.76% in July, slightly higher than June’s 6.68% — but as we come to the end of August, those rates will be appreciably lower.
More later . . .