The number of unsold homes is the highest in 13 years, making this the lowest sale-volume period since January 2004 for existing homes. This downturn marks the fourth consecutive decline in the housing market with sales down over 4 percent since July – 11 percent lower than July 2005.
The net result will most likely be increased prices on homes that go on the market, meaning less volume as buyers wait for prices to go back down.
Even so, mortgage applications have been rising for the past three weeks as interest rates have gone down and refinancing has become more desirable. This increase in refinance loans has counterbalanced the decline in home purchase loans.
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