Last week included both problems and progress in the housing market. Getting the probs out of the way, June Existing Home Sales came in down 0.8% versus May, to an annual rate still below 5 million units, lifting the months' supply to 9.5. But all the sales decline was from condos and coops, single-family sales staying the same. We appear to be bouncing along a bottom, as the median price of an existing home rose for the month and is now up 0.8% from last year. Average prices are up 2.7% versus a year ago.
But strong progress could be seen in the new homes market, as June Housing Starts were UP 14.6%, with gains occurring in all major regions. Multi-family starts, which are very volatile month-to-month, were up strongly, but so were single-family starts, UP 9.4% over May, while new building permits were UP 2.5% for June. Lastly, the Mortgage Bankers Association reported purchase loan demand was stronger than at the same time a year ago.
Thursday's Greek bailout spurred bond selling. U.S. debt ceiling squabbles didn't help bonds either, although this may change as the August 2 deadline approaches. The FNMA 4.0% bond we follow ended the week down .06, at $100.22. National average mortgage rates hardly moved for the week, staying near their lows for the year, according to Freddie Mac.
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