Is There a Bottom to Existing Home Sales?

The Existing Home Sales data was released this morning and the numbers were once again below expectations.  Surprised?  We're not.  We still think they will go lower.

This morning's report showed that Existing Home Sales was at the lowest levels in 10 years, coming in at 5.04M versus expectations of 5.22M.  On top of that, inventory rose to 10.5 months and median home prices declined 4.2% in the past year.

Sound bad?

Chances are it will get worse still, before it gets better.  There are still a large number of factors working against selling your home.  Can it be sold, absolutely, but you must be realistic in your expectations.

There is some good news out of the report.

Mortgage bonds are reacting positively to the news and are climbing higher.  Since these are the driving force behind conforming loan rates, you can expect to see lower mortgage rates on conforming loans ahead, at least for now.