WASHINGTON — While the National Association of Realtors reported the largest monthly rise in home sales in three years during the month of February that gain was prior to concerns over the subprime market struck.

Additionally, that rate was only achieved after the median home price fell 1.3% from the previous year, according to NAR.

"The housing sales data we got today is history," CUNA Chief Economist Bill Hampel told CNN Money. "The news on the subprime has all come since these contracts were signed." Now, the market and regulatory response to subprime mortgage issues means fewer people will not be able to qualify for the same mortgage amounts as they previously might have. This will mean extra homes on the market providing further downward pressures, he added. "All of this points to a softer housing market than we otherwise would have expected," Hampel told CNN Money.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.