An index of sales contracts on previously owned homes fell 1.9% in February from the prior month, the National Association of Realtors reported Tuesday. The index, considered a leading indicator of existing home sales, was down 21.4% from the February 2007 level.
There are a couple of ways you can look at this number. First, fewer older home sales could mean more home owners are holding on to their properties and not listing them for sale. This is what happens in a down market. Why sell my home now when prices are suppressed when I can sell next year for more of a premium?
Or, this number could translate into fewer mortgages being approved due to more stringent lending practices. And yes, refinance loans due fall into this category as well.
What do you all think?
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