Pending home sales in the U.S. hit a new low

For this considering investing in real estate in the US, the figures seem "interesting," at the moment and another drop in pending home sales does not point to bottom being reached any time soon. According to Mike Larson, real estate and interest rate analyst at Weiss Research:

Pending home sales slumped another 2.6% in June after a 29.9% plunge in May. That failed to meet market expectations for a 4% gain. Moreover, sales were weak in three out of four regions of the country -- down 0.2% in the West, down 9.5% in the Midwest, and down 12.2% in the Northeast. They ticked up 3.7% in the South. The index, at 75.7, is off 18.6% from its year-ago level and the lowest in history.

If you're looking for a pulse in the U.S. housing market, best of luck. I can't seem to find one. Pending home sales fell once again, with broad-based geographic declines and a nominal new low for the index, first published in 2001. Leading indicators like the Mortgage Bankers Association's index of purchase loan applications also can't get off the mat.

What's remarkable about the weakness is that it's coming at a time where mortgage rates are hovering around 4.5%. These aren't just the lowest mortgage rates in the past several years. Some research suggests they're the lowest since before the Wright Brothers first flew at Kitty Hawk! Unless and until we get a rebound in the labor market, we're just not going to see good things happening in housing.

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Our own research suggests staggering amounts of investment property for sale in the United States, with estimates of 22 million foreclosed homes sitting rotting on bank's balance sheets. Hard to know or guess at where the bottom of the market is going to be.