The US Federal Reserve (the FED) during the week ending June 26, 2009, made no change in the FED funds rate, and mortgage rates were generally unchanged.

According to the National Association of Realtors, existing US home sales in May 2009 rose 2.4% vs. April 2009.  That was the first time since September 2005 that existing home sales increased for two months in a row.

Market Saturation ~ The US inventory of unsold homes declined to a 9.6 month supply in May 2009 from a 10.1 month supply in April.

The National Assoc. of Realtors survey showed that 29% of May home sales were to first-time homebuyers, which were helped by the $8,000 tax credit, low mortgage rates, and favorable affordability levels.

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Harrison K. Long, Explore Group Properties, Coldwell Banker Previews, Irvine, CA.

www.ExploreTheOC.com