According to a release today by the National Association of Realtors, sales of existing homes during the month of July dropped 27.2 percent. Total home sales are now at their lowest level since 1999, and single-family home sales are at their lowest since 1995. The home buying tax credits that were in place last year expired in April of this year, so it is not a big surprised that the numbers dropped. 27.2 percent was, however, a larger drop than had been expected. You can read the release in its entirety here.
This housing data introduces even more talk of a double dip recession. Reuters reported today that Chicago Federal Reserve Bank President Charles Evans mentioned that the risk of a double dip had risen in the last six months. Evans also stated that though the risk had risen, it was not the “most likely outcome.” The Dow Jones Industrial Average fell 133.96 points to 10,040.45 today while the Nasdaq fell 35.87 points to 2,123.76. The S&P 500 dropped 15.49 points to 1,051.87.
European markets were down while Asian markets were mixed today, even as the Japanese Yen rose to its highest level against the dollar in 15 years.
