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Title: U.S. Pending Home Sales Climb as Market Steadies After End of Tax Credit
Source:
Bloomberg
URL Source: http://noir.bloomberg.com/apps/news ... 0601087&sid=a1BZwuhzJLJ8&pos=1
Published: Sep 2, 2010
Author: Courtney Schlisserman and Timothy R. Hom
Post Date: 2010-09-02 13:32:30 by Brian S
Keywords: None
Views: 744
Comments: 1
Sept. 2 (Bloomberg) -- Pending sales of existing houses unexpectedly climbed in July from a record low, indicating the real-estate market is steadying following the end of a government tax credit. The index of purchase contracts rose 5.2 percent after a revised 2.8 percent drop the prior month, figures from the National Association of Realtors showed today in Washington. Combined with data showing claims for unemployment benefits dropped and orders to factories increased, the reports allayed concern the economy was tipping back into a recession. “We’re growing at a mediocre clip,” said Stephen Stanley, chief economist at Pierpont Securities LLC in Stamford, Connecticut. “We just haven’t rebounded sufficiently from the severe recession.” Today’s reports support Federal Reserve Chairman Ben S. Bernanke’s scenario for a “modest” pace of expansion in the second half of the year. Figures from the Labor Department tomorrow are projected to show the jobless rate rose in August for the first time in four months, showing the pace of economic growth is not enough to revive employment. Stocks rose as retailers climbed after industry figures showed back-to-school discounts and tax holidays lured consumers last month. The Standard & Poor’s 500 Index rose 0.5 percent to 1,085.16 at 12:35 p.m. in New York. The S&P 500 Retailing Index rose 1.8 percent. Tax Credit Home sales plunged following the April 30 deadline to sign contracts and become eligible for a government tax credit worth up to $8,000. While record-low mortgage rates are helping to make homes more affordable, further gains depend on the economy creating jobs. The July rebound “points to some stabilization in existing home sales at very low levels in August,” Yelena Shulyatyeva, an economist at BNP Paribas in New York, said in an e-mail. “The housing market outlook remains highly uncertain in light of mounting inventories from foreclosed and vacant properties.” To help homeowners who’ve lost income avoid foreclosure, the Obama administration plans to offer $1 billion in zero- interest loans as part of $3 billion in additional aid targeting economically distressed areas. Pending sales were projected to fall 1 percent, according to the median forecast of 37 economists surveyed by Bloomberg News. Estimates ranged from a drop of 5 percent to an increase of 4 percent. The index rose for the first in three months, reaching the third-lowest in data going back to 2001.
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#1. To: Brian S (#0)
Pending sales of existing houses unexpectedly climbed in July from a record low, indicating the real-estate market is steadying following the end of a government tax credit.
Mad dog gets
"calibrated..."
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