Connect With PPD
Follow Us:
Sections: Economy

May Existing Home Sales Data Comes In Better-Than-Expected

The latest existing home sales data report from the NAR showed U.S. home resales rose more than expected in May and the inventory of properties up for sale was the highest in more than 1-1/2 years, a welcomed piece of optimistic news in an otherwise weak housing market.

The National Association of Realtors said Monday that existing home sales increased by 4.9 percent to an annual rate of 4.89 million units, which is the largest gain since August 2011.

Meanwhile, April’s increase was revised slightly up to a 4.66 million units from the previously reported 4.65 million units.

Economists polled by Reuters had forecast sales rising by just 2.2 percent to a 4.73 million-unit pace last month, based upon a rash of bad economic data points.

The housing market and so-called recovery completely fell on its face in the second half of 2013. The housing market is still hanging by a thread, relying upon artificial and dangerous government regulations and rules to regain momentum after a small increase in mortgage rates and temporary modest price increases stifled demand.

Earlier this month, two policy statements made by Mel Watt, director of the Federal Housing Finance Agency (FHFA), and Shaun Donovan, secretary of HUD, backed-off tight restrictions that required sound lending practices, repeating the mistakes of the subprime mortgage crisis.

Even though there has been several consecutive months of increases, sales were still down 5.0 percent compared to May of last year and they are currently down 9 percent from a peak of 5.38 million units hit in July.

Further, the FHFA is the regulator of Fannie Mae and Freddie Mac, which along with the Federal Housing Administration (FHA) are responsible for guaranteeing about 75 percent of all mortgage credit in the United States. In an effort to boost a failing housing market, they’ve abandoned the rules against underwriting risky mortgages. While homebuilder confidence remains relatively dim, government regulators are less concerned about repeating the mistakes that led to the housing crisis and more concerned with political implications of a weak economy.

READ FULL STORY

SubscribeSign In
PPD Business Staff

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

Share
Published by
PPD Business Staff

Recent Posts

Media’s Worst Russian Collusion Sins May Soon Be Repeated

The most damning journalistic sin committed by the media during the era of Russia collusion…

1 year ago

Study: Mask-Mandates and Use Not Associated With Lower Covid-19 Case Growth

The first ecological study finds mask mandates were not effective at slowing the spread of…

4 years ago

Barnes and Baris on Big Tech’s Arbitrary Social Media Bans

On "What Are the Odds?" Monday, Robert Barnes and Rich Baris note how big tech…

4 years ago

Barnes and Baris on Why America First Stands With Israel

On "What Are the Odds?" Monday, Robert Barnes and Rich Baris discuss why America First…

4 years ago

Personal Income Fell Significantly in February, Consumer Spending Weaker than Expected

Personal income fell $1,516.6 billion (7.1%) in February, roughly the consensus forecast, while consumer spending…

4 years ago

Study: Infection, Vaccination Protects Against Covid-19 Variants

Research finds those previously infected by or vaccinated against SARS-CoV-2 are not at risk of…

4 years ago

This website uses cookies.