The National Association of Realtors reported sales of previously owned homes fell 0.3% in May to the lowest in almost four years. In addition to slowing sales the supply of unsold homes jumped 5%, representing supply that will last 8.9 months at the current sales rate, the highest in almost 15 years. If you are not yet depressed, the report also told us the median price of an existing home fell 2.1% last to $223,700, the 10th consecutive month of year over year declines. Apparently the slowing housing and mortgage markets are taking their toll in California, as increased job losses have pushed the unemployment rate to 5.2%. This negative economic news has had a positive effect on the bond market, with the yield on the 10 year note dropping to 5.10%. Interestingly, the equity markets are also rallying after their steep decline on Friday.

tags: economics, economy, housing, real estate