Home Sales...Improving or getting worse?

Home Sales – Improving or Getting Worse?

The Columbus Board of Realtors MLS statistics show that as of August 31, 2006, the number of single family homes sold is just about 4.2% lower than in 2005. However, if you follow trends, the number of homes sold in August 2006 was 12% lower than in August of 2005 and July 2006 was 18% lower than July 2005. Seems the Federal Reserve, the national interest rate controlling body, is showing some concern for the slowing performance.

Read on -

Fed Lower Rates In The Future?by Blanche Evans
We've been telling you at Realty Times that the housing slowdown wouldn't last long, and now optimism is to the point that some economists are starting to wonder if the Federal Reserve will start to lower short-term interest rates in 2007 in order to reignite home sales.
They're already betting that the Fed will leave rates alone this week when the policy makers meet this Wednesday.
But some are keeping their eyes on foreclosures -- one of the first signals that housing is not recovering.
"To this point, generally healthy economic growth and labor markets have kept delinquency rates from rising," explains Doug Duncan, chief economist for The Mortgage Bankers Association. "Going forward we expect some further slowing in the economy and the housing market. As a result, we will see modest increases in delinquency and foreclosure rates in the quarters ahead."
This could encourage the Federal Reserve to lower short-term rates instead of raising them.
Says David Lereah, chief economist for the National Association of Realtors, "Mortgage rates are one of the bright spots in the economy right now, with an unexpected decline recently in the 30-year fixed rate to a narrow range around six-and-a-half percent. This should encourage some of the nearly 4 million people who’ve found newly created jobs over the last two years.”
Published in Realty Times September 18, 2006
Edited by: Jim Lubinsky
Read the entire article at
http://realtytimes.com/rtapages/20060918_lowerrates.htm