Existing Home Sales Decline in July

Washington, DC, Aug. 18, 2011 -- Existing-home sales declined in July from an upwardly revised June pace but are notably higher than a year ago, according to the National Association of Realtors.

Monthly gains in the Northeast and Midwest were offset by declines in the West and South.

Total existing-home sales fell 3.5% to a seasonally adjusted annual rate of 4.67 million in July from 4.84 million in June, but are 21.0% above the 3.86 million unit pace in July 2010.

Lawrence Yun, NAR chief economist, said there is a tug and pull on the market.

“Affordability conditions this year have been the most favorable on record dating back to 1970, but many buyers are being held back because banks are offering financing to only the most highly qualified borrowers, ignoring a large share of otherwise creditworthy buyers,” he said.

“Those potential buyers represent the difference between an uneven recovery and a much more robust housing market that could stimulate additional economic activity and create jobs.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 4.55% in July, up from 4.51% in June.