In June, according to the National Association of Realtors, U.S. home resales fell to their lowest level in 7 months. Worse yet, sales are running behind last year, the worst year in 13 years. This despite near record low mortgage rates. Why is this happening?
Because many prospective buyers fear the economy and fear for their jobs, while others are staying on the sidelines for now in anticipation of lower prices to come. Still others are deeply in debt and/or no longer have equity in their current homes and can't qualify for mortgages even at cheap rates.
The situation is spiraling downward. For the resale housing market and the economy to rebound will require a much stronger jobs market, a much higher level of consumer confidence and for the U.S. government not to set another debt cap but to get control of its soaring deficits.
Dick
To learn more please see "Home Resales Decline Again as Buyers Hesitate," The Wall Street Journal http://online.wsj.com/article/SB10001424053111903554904576457830106557422.html?mod=googlenews_wsj
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