Mortgage defaults mount

Mortgage defaults and rising gas prices are among the top reasons why April of 2007 witnessed the lowest level of consumer confidence in over eight months. New York’s Conference Board’s index of consumer confidence dropped to 104.0 this past month. This figure is down from 108.2 in March. Last year’s index average was 105.9.

Consumers reported that they don’t believe that there is an abundance of jobs and, as a class, few say they are planning to buy a house. According to the National Association of Realtors previously owned homes are selling at their lowest level in practically four years. Additionally, Americans who say they plan to buy a home in the next six months is at a more than two year low at 2.7 percent.[tags]mortgage defaults,real estate bubble,housing bubble,consumer confidence[/tags] San Diego real estate agents

Four Year Low for Pending Home Sales

Activity in the housing market will remain slow during second quarter as consumers continue to react to tighter lending standards and a decline in subprime lending, according to a recent report from National Association of Realtors. The Association's Pending Home Sales Index (PHSI), a forward-looking indicator that gauges home sales activity for upcoming months, continued to decline in March, falling 10.5 percent from a year ago to a reading of 104.3. While a PHSI of 100 or more generally indicates a high level of home sales activity, the March PHSI was the lowest reading since March 2003.[tags]housing bubble,home sales,real estate bubble,housing market[/tags] San Diego mls