Courtesy of Mish.
The Wall Street Journal reports Pending Home Sales Up 3.4% in March, the first rise in nine months.
Facts and Figures
- Pending sales up 3.4% from February
- Pending sales down 7.9% from year ago
- Index 2.6% Below 2001 Level
- Actual new home sales down 14.5%
Wishful Thinking
In the wishful thinking department, Gennadiy Goldberg, U.S. strategist at TD Securities stated “The stronger pending home-sales report hints at resurgence in housing-market momentum during the typically busier spring buying season.”
Don’t count on it. Home prices are up, and so are mortgage rates. Thirty year mortgages are about a full point higher from a year ago. The recovery, if that’s what wants to call it, was driven by all-cash sales.
Investor demand has waned at these prices. There is just not much left of the recovery, if anything at all.
Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com
