http://www.bloomberg.com/news/2012-1...n-october.htmlThe index of pending home resales climbed 5.2 percent, exceeding the highest estimate in a Bloomberg survey of economists, to 104.8 after a revised 0.4 percent gain in September, figures from the National Association of Realtors showed today in Washington. The median forecast in the Bloomberg survey called for a 1 percent gain.
It's the 18th straight monthly increase for the forward-looking indicator.
Now is no time to be a housing bear. The economy is improving as it is so closely tied to housing. A broad economic recovery is underway and those who wish to participate in the next bull run will be thankful they turned their pessimism into optimism.
Weekly purchase applications data is also holding up. Right now, 80% of lending activity is refinancing; 20% new purchases. After banks work through a backlog of refinances, I suspect we'll see banks open the floodgates to buyers. I'm encouraged by what we see. Borrowers are reducing their debt servicing costs, enabling them to spend after refinancing. Furthermore, new buyers are coming back into the market as they see that the cost of housing - including all debt service costs and taxes - is as low as it gets.
Put on your rally caps. Get ready to party like it's 1999.
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