S&P/Case-Shiller Home Prices Fell 15.3% in April

Highlights:

• Home Prices: "In 20 U.S. metropolitan areas fell in April by the most on record. The S&P/Case-Shiller home-price index dropped 15.3 percent from a year earlier "
  

• James O'Sullivan: "A senior economist at UBS Securities LLC said, "There's such an excess of inventories that we certainly expect to see more price declines."
  

• Rising Borrowing Costs: "Fannie Mae, the largest mortgage buyer, last week cut its forecast for new and existing home sales this year as 30-year fixed mortgage rates jumped to an eight-month high."

Comments:

Testing the Water: "Come on in the water is just fine", is something I would expect to hear from a real estate seller. But to all you buyers eager to get in - - beware.

Rising Home Interest Rates: Certainly are complicating the picture. The Federal Reserve is in a very delicate situation of strengthening the dollar and fighting inflation versus stimulating the economy. Stable rates and prices would be nice but doesn't appear to be in the near term cards.

Jim