Although housing starts had better numbers in May, sales of existing homes are projected to have fallen during the month. This further shows the unevenness of the recovery in the housing market, particularly on a region-by-region basis.
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Growth in the housing sector is continuing but at slow, gradual, and uneven rates. Continued low mortgage rates hold the key to further growth and the Fed has committed itself to keeping interest rates near zero for another two years, through 2014.
A survey of 74 economists reflects a decline in existing home sales of 1.1% to an annual rate of 4.57 million in May. The retreat is being blamed on the uncertainties in the job market since the end of March after having improved significantly during the first two months of the year.
The housing number for existing homes is projected to come in between a 4.4 million and 4.7 million annual rate. Existing home sales reflect the number of houses having actually closed during the month.