More Housing Data

And yet again it came in mixed. The Case-Shiller Home Price Index decreased yet again but in what some economists termed, 'Some regions are struggling to turn things around', some regions actually showed flattening trends. Even nationally, the rate of decline seems to be slowing somewhat. Now the focus turns to buyers and the forces pulling in opposite directions. As home prices have fallen to make homes more affordable, bank lending standards have tightened and mortgage rates have risen, making it more difficult for buyers to obtain financing. Even if prices stop falling, it will be awhile before they begin to rise again and it would require a resolution of Fannie and Freddie issues to give banks enough confidence to lend again. But speaking of confidence, consumer confidence ticked higher for the second month in a row. No, that doesn't mean consumers think the economy is better. Actually, the survey showed that consumers opinion of the current situation is still bleak. However, their assessment of the economy over the next 6 months improved in some categories. A sign of things to come? Perhaps.