Existing Home Sales Drop to 2002 Levels

ARLINGTON, Va.–Existing home sales declined for the fourth straight month, according to data gathered by the National Association of Realtors and analyzed by NAFCU. Noting June’s decline of 3.8% is the slowest monthly pace since November 2002, NAFCU said the decline is slightly worse than what most economists expected, indicating a continued softening of the housing market. NAFCU said it expects the median home price to continue to drop this summer and then gradually rise by year-end. As credit unions have increasingly turned to real estate loans to make up for stagnant auto loan growth, all eyes have been on how the weakening housing market, combined with big rate adjustments in adjustable rate mortgages, will impact credit union real estate lending.