he surging stock market showed no signs of slippage this morning, as investors reacted to another favorable update about the national housing market.
Pending U.S. home sales rose in June for the fifth consecutive month, the National Association of Realtors reported today.
For June, the NAR said its pending home sales index rose 3.6 percent to 94.6, from an upwardly revised reading of 91.3 in May. The last time there were five consecutive monthly gains was July 2003.
Low prices, attractive mortgage rates and a first-time homebuyers tax credit of up to $8,000 have jumpstarted sales, the NAR said.
"Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who've been on the sidelines. Activity has been consistently much stronger for lower-priced homes," said Lawrence Yun, NAR chief economist. "Because it may take as long as two months to close on a home after signing a contract, first-time buyers must act fairly soon to take advantage of the $8,000 tax credit because they must close on the sale by Nov. 30."
Yun expects existing-home sales to gradually rise over the balance of the year, with conditions varying around the country. "It appears home sales are on a sounder footing and inventory is gradually being absorbed," he said.
On the stock market, the largest local gainers in the BizTimes Stock Index this morning were Joy Global Inc. (up 86 cents to $40.02) and Fiserv Inc. (up 60 cents to $48.76). The largest local decliners this morning were Johnson Outdoors Inc. (down 44 cents to $7.06) and Wisconsin Energy Corp. (down 43 cents to $43.13).
Another strong housing report sparks another stock rally
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