Daily Commentary by Larry Baer: Home
resales rose in July as low interest rates and a modest improvement in the
labor market helped improve home buying conditions. The National Association of Realtors reported
this morning the pace of existing home sales rose 2.3% last month -- the gain
was slightly below the majority of economists' expectations. Distressed sales represented 24% of all
transactions in July, down from roughly one-third last year. Foreclosures and short sales accounted for
12% of all existing home sales while all-cash and investor deals accounted for
a combined 46% of the total.
In a separate report the Mortgage Bankers of
America said its seasonally adjusted index of mortgage application activity,
which includes both refinancing and home purchase demand, fell 7.4% during the
week ended August 17th - driven almost exclusively by a 9.2% slump
in refinance requests. The purchase
index bucked its downward trend over the past month and rose by 0.9%. The contract rate for 30-year fixed-rate
conforming mortgages increased by 10 basis-points on a week over week basis.
The rate is up 12 basis points from four-weeks ago and down 51 basis-points
from its year ago mark.
THE
MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
