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Aren’t you glad that the Obamanista White House decided that the US housing market was their priority 18 months ago? They rolled out TWO housing credit programs, one giant $75 billion anti-foreclosure program, had Fannie, Freddie and the FHA guarantee 95% of all new mortgages, had the Fed artificially reduce mortgage rates by buying $1.2 trillion of toxic mortgages, and prayed to Allah. And what do we have to show for it? The lowest home sales in July since 1996 and the highest months supply of houses for sale in history.

Someone get Kudlow on the line. His green shoots are turning into green poops. Can any of my esteemed readers guess what happens to home prices next? By the way, don’t forget about the millions of Alt-A and Option ARM resets in 2011 and 2012. Hold on tight, it is going to be a bumpy ride.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, dropped 27.2 percent to a seasonally adjusted annual rate of 3.83 million units in July from a downwardly revised 5.26 million in June, and are 25.5 percent below the 5.14 million-unit level in July 2009.

Sales are at the lowest level since the total existing-home sales series launched in 1999, and single family sales – accounting for the bulk of transactions – are at the lowest level since May of 1995.

Total housing inventory at the end of July increased 2.5 percent to 3.98 million existing homes available for sale, which represents a 12.5-month supply at the current sales pace, up from an 8.9-month supply in June.

Existing Home Sales July 2010

Existing Home Months of Supply, July 2010