Existing month-to-month home sales increase for first time since September 2005 - Boston Business Journal:

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On Tuesday, the released its monthly reporton existing-homer sales. The report showedc the first month-to-month increase since September 2005. Sales of existiny single-family homes, townhomes, condominiums and co-ops rose to a seasonalluy adjusted annual rateof 4.77 million units in May, a 2.4 percentg increase from 4.66 million in April, accordinvg to NAR. The May 2009 figurese are 3.6 percent lower than a year ago, when the pace was 4.95 In the announcement, NAR’xs chief economist, Lawrence Yun, said low mortgage lower purchase prices and the federal tax creditfor first-timre buyers helped spur sales.
“However, the increase in sales is less than expectede because poor appraisals arestallingh transactions,” Yun said. “Pending home sale s indicated muchstronger activity, but some contracts are falling throughn from faulty valuations that keep buyers from gettiny a loan.” While existing home sales increased, mortgage originations are cominbg in lower than previouslyu forecast. On Monday, the lowered its forecast of mortgags originations in 2009 by morethan $700 billion, citing lower purchase prices, more cash purchases, lowe refinancing rates and lower volume in the Fannide Mae and Freddie Mac Home Affordablwe Refinance Program.
The association now expects mortgage originations tototalk $2.03 trillion in 2009. As part of its the MBA studieshome sales. It is forecastingf 4.8 million existing home sales in 2009, a 1.2 percenyt decline from 2008, and 352,000 new home sales, a declinwe of about 27 percent. “Median home pricee for new and existing homes will likely continue to dropping by about 10 percent from2008 levels, but levelingh off in 2010 as the economy the association’s chief economist, Jay said in a written statementt issued Monday.