The Hunt for the Next 10 Bagger

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U.S. housing market still isn’t all fine and dandy
The U.S. housing market still isn’t perking up.

An index based on contracts signed by buyers fell in June in a mild surprise to Wall Street. The pending home sales index declined by 1.1%, according to the National Association of Realtors.

Economists had expected a small uptick, especially after an outsized 6% gain in May that marked the third straight increase.

What’s been holding the market back? The usual: rising home prices, higher mortgage rates, tougher loan requirements and sluggish wage growth for prospective buyers.

With home prices starting to moderate and the economy gaining steam, many analysts have been forecasting a steady improvement in sales. So far it hasn’t happened.

If sales do start to accelerate, the pending home sales index is a good bellwether. About four-fifths of the contracts signed result in actual sales that close within two months.

Yet although the pending home sales index is up 9% from February, it’s still down 7.3% compared to June 2013. Sales of new and previously owned homes hit multi-year highs last summer before faltering in the face of surging prices and a backup in mortgage rates. http://blogs.marketwatch.com/capitolreport/2014/07/28/u-s-housing-market-still-isnt-all-fine-and-dandy/