Data on new home mortgages cited by the National Association of Realtors, indicates that home sales have reached a new low. After an upward surge during the first quarter of 2010, the Pending Home Sales Index showed a decline of 2.6% in the number of sales contracts signed in June. While the drop was modest, the figure indicates that the condition of real estate around the nation remains less than ideal, and is not likely to change any time soon.

Sales were brisk from January to April, owing to tax breaks offered to aid taxpayers in affording to purchase new homes. Once those incentives ended in April, consumer interest in real estate began to decrease noticeably. Even decreases in the rates offered for refinance a mortgage did little to capture the attention of consumers. Less interest by qualified buyers meant that the number of new home mortgages issued during the second quarter fell each succeeding month, a trend that has continued into the third quarter of 2010.

How will Mortgages Fare in the Months to Follow

According to a breakdown by region, the Pending Home Sales Index shows the greatest decrease in home sales in the North, East and Midwest areas of the country, while the west encountered the lowest negative change in home sales. The South was the only area to report an increase in home sales for the period cited, and is anticipated to post the only significant gains in the number of new mortgages granted for the same period. These gains are not expected to be enough to offset decreases elsewhere in the country, leading analysts to believe that figures for both home sales and home mortgages during the month of August will continue the decline noted in previous months.

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