Posted on 11/25/2013 8:15:58 AM PST by whitedog57
According to the National Association of Realtors, pending home sales dropped 0.6% in October. The West led the decline with -4.1%.
Year-over-year (YoY), pending home sales fell -2.2%, the lowest print since May 2011.
Was it interest rate increases? Partly, at least in May and June. But since a recent high on August 22nd, the Freddie Mac 30 year mortgage commitment rate has been falling along with pending home sales.
Rising house prices combined with declining real median household income isn’t helping home sales.
And, of course, falling labor force participation isn’t helping, although house prices continue to rise in spite of it.
Not a great pending home sales report. But given a declining labor force participation rate and declining real median household income, it could have been worse.
The middle class is getting it from all sides and they wonder why nobody is buying houses.
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