GOOD NEWS FOR HOME BUYERS.

Home sales hit slowest pace in 5 years and prices drop!

If you are in the market for a house, now is the time. Home builders and homeowners wanting to sell are going after fewer buyers in a tight credit environment. Readers of this blog got the warning not long ago when I declared that we are in a buyers' market. The facts below prove me right. I also warned you that the Fed may act to improve the liquidity so lenders do not run out of money: the reduction of the discount rate by 1/2% accomplished that. The last prediction has to do with the funding rate. We have to wait until September 15 when the fed meets. If the funding rate is cut, mortgage rates will follow. Exercise caution in your dealings because rates may or may not fall further.

The National Association of Realtors reported today that sales of existing homes dipped by 0.2 percent in July, compared to June, to a seasonally adjusted annual rate of 5.75 million units.
The median price of a home sold in July slid to $230,200, down by 0.6 percent from the median price a year ago. It marked the 12th consecutive month that home prices have declined.

Based on the July sales pace, it would take 9.2 months to exhaust the number of single-family homes on the market, the highest level in nearly 16 years, and 11.9 months to exhaust the level of condominiums on the market. The months supply of condos sitting on the market is 45.1 percent higher than a year ago.

When it comes to mortgages, you have me watching the market so you don't have to. If you need to buy or refinance, contact me before you make a move.
E-mail me at info@p2funding.com or call me at 773-562-6972.