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Pending home sales index near record low

By Times Wires
Published September 6, 2007

WASHINGTON

A near-record low for an index that forecasts near-term home sales suggests borrowers in expensive areas are struggling to finalize home purchases amid mortgage market troubles. The National Association of Realtors said Wednesday its seasonally adjusted index of pending sales for existing homes fell 16.1 percent in July from a year ago and 12.2 percent from the prior month. July's reading of 89.9 was the second-lowest ever for the index and its lowest since September 2001, when the economy was jolted by the terrorist attacks. The pending home sales index is designed to predict sales levels over the following two months.

One-third of home loans fail to close

A third of home loans originated by mortgage brokers failed to close in August as investors shied away from riskier borrowers, a new survey says. The survey of 1,700 mortgage brokers sponsored by trade publication Inside Mortgage Finance comes as numerous lenders that catered to subprime borrowers with weak credit close down and lenders back away from riskier lending practices common in recent years. The survey also found that some homebuyers backed away from deals last month. Some may be waiting to see if market improves, while some sales may fall apart because sellers are unable to get financing for their new home.

Auto head injury rules tightened

New passenger vehicles will be required to provide head protection for side crashes in 2013 model-year vehicles, the government said Wednesday. The safety upgrades, which have been under review since 2004, could save more than 300 lives and prevent more than 400 serious injuries annually through the installation of side air bags that protect the torso and side curtain air bags that guard the head. Side-impact crashes killed 9,200 people in 2005, the most recent figures available, or about 29 percent of motorists killed in passenger vehicles. The auto industry has voluntarily agreed to install side air bags in all new passenger vehicles by September 2009.

Largo

Circuit board firm earns Inc. kudos

Largo-based Bare Board Group Inc. earned a spot in Inc. magazine's first-ever list of the 5,000 fastest-growing U.S. private companies. The 5-year-old firm, which specializes in procuring bare printed circuit boards, had a 153 percent sales increase in the last three years, a release said.

GENEVA

U.N. predicts U.S. economy to lag

The U.S. economy will slow sharply this year and fall behind rates in most of the world, according to forecasts in a U.N. report released Wednesday. Woes in the housing market will drag U.S. gross domestic product for 2007 to a modest 2 percent growth, compared with 3.3 percent last year, the U.N. Conference on Trade and Development said. For the first time since 2001, both the European Union, at 2.8 percent, and Japan, 2.3 percent, are predicted to have higher GDP growth than the United States. China, at 10.5 percent, and India, 8.5 percent, should experience growth rates similar to the past three years, the report said.

[Last modified September 6, 2007, 00:15:44]