Posted on 08/23/2013 7:17:47 AM PDT by whitedog57
New home sales plunged 13.4% to an annual rate of 394,000 units.
nhsjuly13
If we chart new home sales against the Freddie Mac 30 year commitment rate, we see a pattern (in the red box). Mortgage rates rise and new home sales plunge.
nhsjulfreddi
Expectations were for 487k and a prior reading in June of 497K that was revised down to 455K. So the July read declined and was below expectations.
In baseball parlance, this was a big swing and a miss.
obama-baseball-shirt
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About half of all home sales during the past year have been cash transactions. Rising mortgage rates serve to keep the cash price values down. It will avoid flipping recently purchased housing in any huge number. Rising rates in a very high unemployment economy and where home values have fallen for five years now only makes sense to me. But I’m not that smart.
Hey Obama, how is that 5th summer of recovery working out for you?
Expected!
Wait til the rates go up another point. And they will.
I have the perfect name for that!
I call it, “the Law of Supply and Demand”.
Think it’ll catch on?
It's obvious that only hateful racist bigoted conservatives understand it, and frankly, the term smacks of Capitalism.
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