The MReport Webcast: Friday 7/25/2014

The Commerce Department reported on Thursday that sales of new homes last month were at an estimated seasonally adjusted annual rate of 406,000, reflecting a decline of more than 8 percent from May. Meanwhile, May’s sales rate, originally reported at 504,000, was revised down to 442,000, erasing much of the nearly 19 percent gain that had been recorded previously.

The Commerce Department's report shows sales slipped in all regions, with the Northeast seeing the biggest percentage decline at 20 percent to a rate of 24,000. In terms of sheer sales volume, the South posted the steepest drop, with sales falling from 231,000 to 209,000 , a 9.5 percent decline. Elsewhere, the Midwest recorded an 8.2 percent monthly drop while the West reported a 1.9 percent decrease.

In a more positive turn for the housing market, RealtyTrac reported Thursday a minor decrease in homes underwater on their mortgage by at least 25 percent. According to the company, about 9.1 million homes last quarter were considered seriously underwater, representing 17.2 percent of all homes nationwide. Despite the favorable trend, RealtyTrac vice president Daren Bloomquist said that a slowdown in home price appreciation has created a stall in equity recovery. Meanwhile, the average loan-to-value ratio on those homes classified as seriously underwater remains at 133 percent, meaning there’s still a lot of ground to make up.