Housing Chartbook: September 2010

Record low mortgage rates have not yet produced much of a lift for home sales. Sales of both new and existing homes appear to have risen modestly following their sharp declines in July in the wake of the expiration of the homebuyer tax credits. With the declines, the supply of unsold homes remains uncomfortably high relative to sales. Sales normally weaken during the fall on a non-seasonally adjusted … Record low mortgage rates have not yet produced much of a lift for home sales. Sales of both new and existing homes appear to have risen modestly following their sharp declines in July in the wake of the expiration of the homebuyer tax credits. With the declines, the supply of unsold homes remains uncomfortably high relative to sales. Sales normally weaken during the fall on a non-seasonally adjusted basis. Because sales are already so low, however, they probably will not fall as much as they normally would, which means the seasonally adjusted data may show modest gains. No significant improvement in sales or construction is expected to take place until the spring homebuying season. By then, the economy should have put up a fairly lengthy string of modest private-sector job gains, which should bolster confidence and household formations. Thank you for your interest in Wells Fargo’s Economic Commentary by email. You are receiving this message because you have requested Economic Commentary information and updates sent via email. If you no longer wish to receive these emails, please click on the following link to access the Economic Commentary by email registration page: http://www.wellsfargo.com/economicsemail.