Existing Home Sales Up

Existing Home Sales announced for December show a surprising increase of 6.5%. Lennar, one of the largest home builders is currently trading higher and is a market leader for the S&P 500. The good Home Sales Data coupled with better than forecast Leading Economic Indicators has helped lift stocks listed on the Nasdaq, NYSE and S&P by more than 2%.

The housing Data released today is a clear sign that lower interest rates coupled with softer home prices is creating more affordability in the marketplace. Despite the doom and gloom reported on a daily basis, buyers know their own economic situation better than anyone and are prepared to act when it makes sense.

Foreclosure prevention, increasing home sales along with loan modifications being worked by many lenders will help the previously swelling housing inventory levels decline. All good news for the economy should the numbers continue to improve.