Existing home sales hit a five month height, according to data from the NAR, increasing 3.1% in July to 5 mill units from 4.85 million in June.
New Home slaes rose 2.4% in July to an adjusted annual rate of 515,000 unites after falling to almost a two decade low, the Commerce Department said. The inventory of unsold homes declined for the second month in a row, to a 10.1 months' supply at the current sales pace. It is looking like new home sales are beginning to stabilize, as reduced prices have attracted buyers back to purchase.
Prices on both existing and new homes will probably continue to stabilize along with the economy. Domestic products grew at a seasonally adjusted 3.3% annual rate during the second quarter, surpassing most economists' estimates by over a percentage point. The new GDP numbers reflect new data showing that exports were stronger than the first estimated and that business inventories didn't decrease as much as earlier thought.
More proof of a recovering economy could be found in durable goods orders - products that have a life expectancy of at least three years, including cars, computers and aircraft. They increased 1.3% in July, mathcing June's revised number. Economists had predicted order would drop .5%.
Shareholders in Fannie Me and Freddie Mac finally got some good news! Prior week's gossip of nationalization may have been a little early (that doesn't mean it won't happen yet). An emerging sentiment among investors is that both institutions might still have a life independents, which lifted both Fannie Mae's and Freddie Mac's stock 50% higher!
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