Well, new home sales look to be taking another down turn for this month – to the tune of almost 5%, which is fairly significant in the world of mortgage lending and mortgages, home buyer’s market, and the economy in general. Is it a sign of a slow economy, or what exactly is the deal with the overall slump in the home buying and selling market?
It’s actually the largest decline in new home sales since February, when the home buying market took a larger than life plunge down the economic toilet, dropping almost 12%, which is almost unheard of unless times are tough.
And they are indeed. More and more people are turning to high interest debt such as credit cards to bail them out right now, and people are having to learn to really budget their money better in this time of high energy costs and less jobs that pay higher wages to afford a high lifestyle.
This comes at the same time that a slip in the unemployment rate has occurred ( a good thing actually) so it’s rather oxymoronic that we’ve seen this slow down in new home sales simultaneously, with “good” economic news like lower unemployment.