Home Sales Rise As Rates Climb
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Previously owned home sales increased during March even though mortgage rates climbed.
Home resales rose 0.3% to a 6.92 million annual rate from 6.90 million in February, the National Association of Realtors said yesterday.
The level of resales in March was above Wall Street expectations. Analysts predicted a 6.7 million rate of sales of previously owned homes.
“Despite the small increase in sales this month, we still maintain our medium-term analysis that even modest rate increases will slow housing as prices are now above the low end of affordability and virtually any rate increase at all would push affordability to levels that sales would be affected,” the chief U.S. economist at MFR, Joshua Shapiro, said.
The average 30-year rate was 6.32% in March, up from 6.25% in February, according to Freddie Mac. Last week, the 30-year rate was at 6.53%.
The median home price held steady at $218,000 in March – 7.4% higher than $203,000 in March 2005.
Year over year, sales were 0.7% lower last month than in March 2005. Demand fell for five straight months, then rose in February and March of this year.
