FXstreet.com (Barcelona) - Sales of existing homes have continued slowing down in April as a result of tightening credit conditions, although gains in year on year terms seen in some areas plus the recent reversal in mortgage policy means, according to the National Association of realtors, that the market is up for a turnaround.
Existing home sales have declined 1,0% in April to a seasonally adjusted annual rate of 4.89 million units, from the 4.94 M revised annual pace seen in March. At the moment the level is 17.5% below the 5.93 million units posted in April 2007.
Lawrence Yun, NAR chief economist, affirmed that the easing of restrictive mortgage policies will help to strengthen the housing market: I would encourage buyers who were disappointed by poor mortgage options to take another look at the market because the lending changes are significant, he said. Also, a recent notable drop in interest rates on conforming jumbo loans will help consumers in high-cost markets like California and New York.