According to the National Association of REALTORS® (NAR), sales of exisiting homes remained essentially unchanged through July. While increases were seen in the West and Northwest regions, these gains were offset by a decline in the Midwest. The overall national market for existing homes slowed 0.2 percent in July.  NAR still anticipates close to 5.75 million units to be sold in 2007.

The Wall Street Journal reported that the thirty year conventional, fixed rate mortgage was averaging 6.09% on August 31, which is down from 6.25% earlier in the month. NAR president Pat Combs explains that today's buyer still has some great financing options available. "For buyers able to qualify for conventional financing, there are ample opportunities in the current market" she said. “Availability and pricing of conventional loans are reasonable, and FHA-insured mortgage applications have been rising as low- and moderate-income buyers seek alternatives to subprime loans. If buyers are in it for the long haul, now can be a good time to get into your home."

July statistics for existing homes were mixed regionally. Sales for the Northeast region rose 1.0 percent, while the West region saw an increase of 1.8 percent. Existing home sales in the South remained unchanged from the previous month, whereas sales in the Midwest decreased 2.2 percent

President Bush has pledged his support to homeowners struggling in the aftermath of the recent mortgage market liquidity crisis.  Among a handful of initiatives, the president is calling for changes in the Federal Housing Administration mortgage-insurance program to let more people refinance with FHA insurance if they fall behind on their adjustable-rate loans. 

Federal Reserve Chairman Ben Bernake echoed the president's concern for the well-being of consumers and our economy when he said the central bank was ready to take addtional action if needed.  Despite the recent half-point decrease in the discount rate, the Fed is clearly concerned about balancing the short term benefits of liquidity with the long-term challenge of inflation.