Home Sales Climb as Americans Rush to Lock in Rates: Economy Sales of previously owned U.S. homes unexpectedly rose in August to the highest level in more than six years as buyers rushed to lock in interest rates before they increased further. Purchases climbed 1.7 percent to a 5.48 million annual rate, the most since February 2007, figures from the National Association of Realtors showed today in Washington. The median forecast of 79 economists in a Bloomberg survey called for 5.25 million. The housing data reflect transactions begun in June or July, when buyers were trying to get loans at mortgage rates near record lows. The Realtors’ chief economist said sales will probably cool, which combined with figures showing a slump in new-home demand and weaker-than-projected construction explains why the Federal Reserve yesterday decided to maintain stimulus. “We’ll continue to see increases in home sales and prices, though not as fast as in August,” said Gus Faucher, a senior economist in Pittsburgh, which is the best forecaster of existing-home sales over the past two years, according to data compiled by Bloomberg. “The Fed’s decision to hold off on tapering is understandable. We’ll see stronger economic growth toward the end of the year.”
Posted on: Tue, 24 Sep 2013 18:16:39 +0000
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