We received the existing home sales this morning for the month of May. Analysts were expecting an increase of 6% on the month, the number came in at -2.2%. The second worst monthly drop in history.
As Meredith Whitney pointed out on Monday, most economists are factoring the possibility of a double dip in housing, not the certainty, which has already arrived.
Look for talks of a new housing "stimulus" program from Obama's team of mass financial destruction. Since mortgage rates are already at record lows (30 year Freddie Mac loan fell to 4.89) due to 95% of all loans being purchased by the government (taxpayer), maybe the next housing credit will be a $50,000 check in the mail or even $100,000.
If I received a $100,000 check in the mail, even I would buy a home. (As long as it was less than $100,000 purchase price)