Another good sign for the housing market: Builders are clearing out their inventory

If you only saw the headlines this week, you may have missed another positive sign in the housing market.  According to the Census Bureau, the supply of newly-built homes for sale fell to 10.2 months in May, its lowest level in 10 months.  Unfortunately, the New Homes Sales story wasn’t positioned as a positively by the press.  Instead, the most common headline on the data read “New Home Sales Dip 0.6%” with many journalists referring to the figures as “weak” or “disappointing”.  Only, that’s not completely true.

See, one of the nice elements of the monthly New Home Sales report is its footnote section in which the Census Bureau talks about statistical Margin of Error and that section tells us that if the Margin of Error is larger than the measurement itself, the report is useless.  And that’s exactly what happened in May….

To read the rest of this mortgage industry blog, visit:

http://www.loanapproval411.com/info_01/page_1.rad

 

Sincerely and respectfully,

Daniel A. Sosa

PMZ Mortgage Consultant

Office: 209-472-2010 x4716

Cell: 209-298-8017

Email: dsosa@pmzloans.com

Website: www.loanapproval411.com