Now the bad news: pending home sales are not done deals. The buyers often still have to secure a mortgage. And the mortgage market kind of blew up last week.
Even if the current sales go through, a 500 basis point increase in the interest rate is going to put a meaningful crimp in buyer demand. But it's probable that not all of the sales will go through: some buyers won't have locked in a rate, and if the Field Check Blog is correct, others may not be able to get their loan processed in time to close. Joe Weisenthal has more.
This article available online at:
http://www.theatlantic.com/business/archive/2009/06/good-news-bad-news-on-housing/18658/
