LOGIN(888) 592-6631

The Surety Bond Blog

26
Jun
2014

Home Sales Decrease for the First Time in Four Years

The pool of eligible new housing buyers is collapsing due to high market prices and low wages

The pool of eligible new housing buyers is collapsing due to high market prices and low wages

Photo credit: Images_of_Money / Foter / Creative Commons Attribution 2.0 Generic (CC BY 2.0)

The growth in US housing recovery has come to an end. MBA reports show a drastic depreciation in their 2014 growth forecast.

The Mortgage Bankers Association (MBA) lowered their forecast for combined new and existing home sales in 2014 to $5.28 million, which will be first annual drop in over four years. The mortgage lending volume is also expected to decrease for the first time in three years with estimated purchases of $595 billion.

According to consumer strategists at Global Hunter Securities LLC, who foresaw the slowdown, the market is suffering due to buyers’ stagnant incomes, lack of credit and the increasing prices.  Reports also indicate that the economy is mostly generating lower-paying jobs, which adds to the depreciation in home sales.

Read the full article at Bloomberg.com.

Comments (0)

Category: Mortgage Banker Bonds, Mortgage Broker Bonds

Tags:

LEAVE A COMMENT ON THIS POST

Your email address will not be published. Required fields are marked *