Pending home sales are down, prime mortgage delinquencies are up

The June 2008 national pending home sales index released yesterday by the National Association of Realtors dropped by 12.3% from last year's value. The index is intended to be a leading indicator of future closings. According to the NAR:

"A sale is listed as pending when the contract has been signed but the transaction has not been closed."

Based on the latest pending home sales figure, expect Dane County sales volume to remain lower over the next several months.

The Wall Street Journal also published an article yesterday on the delinquency rate for mortgages originated in 2007. According to a study conducted by the FDIC, .91% of "prime" mortgages originated in 2007 were seriously delinquent after 12 months. The equivalent number for mortgages originated in 2006 was .33%.

Stay tuned as we continue to track foreclosures at DaneCountyMarket.com and in the foreclosure topic of our blog.