Existing Home Sales Up

The National Association of Realtors report that existing home sales climbed in July, exceeding expectations. However, counter positions in rising home inventories yield little relief or hope for the bottom of the housing slump. Most experts believe that much of the activity is driven by bank foreclosures--inflating the inventories and driving down housing prices. Normally this would yield a quick bottom as homes become very affordable and rapidly reduce inventories. However, in our current conundrum the credit crunch is poised to drive up mortgage rates pushing home purchases and refinance assistance out of reach-- continuing the death spiral.