SALES HIGHER: The expectation is that sales increased 2 percent in June to a seasonally adjusted annual rate of 4.99 million, according to a survey by data firm Fact Set.
HOME REBOUND: Sales rose 4.9 percent in May, which was the best monthly gain in nearly three years. But even with that increase, the sales rate of 4.89 million was still 5 percent below the pace of
Analysts believe that the housing sector may be starting to regain the momentum it lost after a severe winter and last year's rise in mortgage rates, which cut into the purchasing power for prospective home buyers.
Mortgage rates have come down this year, with 30-year mortgages standing at 4.12 percent last week, according to the
Yet momentum has been elusive in 2014. Fed Chair
Also last week, the
After hitting a peak of 5.38 million sales at an annual rate last July, sales of previously owned homes sputtered. Potential buyers have grappled with a limited supply of homes that is driving prices higher. Lending standards have also been tightened in response to the housing boom of the last decade, when financial institutions granted too many mortgages to home buyers who were unable to meet the monthly payments, resulting in millions of foreclosures.
Five years into the recovery from the deep recession that was triggered in part by the collapse in housing, home sales have yet to return to historic averages. Demand remains strong for the most expensive residences but has faltered for starter homes and those priced for middle class buyers.
The pace of home sales has been below the 5.1 million homes sold in 2013 and off the pace of 5.5 million annual sales that would be consistent with a healthy housing market.
Most Popular Stories
- Businesses, Investors Pressing for Green Policy
- E-scrap Recyclers Find Profits in Upgrades
- Congress Casts a Coy Vote on ISIS War
- 'The Voice' Sounds Different This Season
- Tips for Hiding, Securing Data on Smartphones
- At Groupon, Not a Good Deal of Workplace Diversity
- Lower Used-Car Prices Roil the Auto Industry
- Liberty Power Helps USHCC Go Green
- Porn Lovers Get a New Search Engine
- NSHMBA to Rebrand With New Name, Logo