Existing-Home Sales Decline, But Remain Above 2010 Level
May 08, 2011
WASHINGTON -- Sales of previously owned homes fell 0.5% in July, the second straight decline, as mortgage rates remained over 8%. Still, the sales rate was well above the pace of 2010. The National Association of Realtors said Monday that sales of existing single-family homes totaled 4.14 million at a seasonally adjusted annual rate, down from a revised 4.16 million in June. Still, the July rate was higher than during any month of 2010, when 3.80 million units were sold. The full text of the report is available. The reading for June was revised lower, from an orginally reported 4.18 million units. That represents a 2.8% decline from May, when sales stood at a record 4.28 million units. The relatively high level of mortgage costs has slowed much of the housing industry, although it remains at healthy levels. Housing starts have fallen for three months through June, when new home sales also declined. Thirty-year fixed-rate mortgages averaged 8.25% in July, down slightly from 8.32% in June but well above the 7.03% average last January. The monthly payment on a $100,000 mortgage with a 7% interest rate was $665, while the payment on the same loan with a 8.5% rate was $769, a difference of $104. The Realtors group also reported a 4.7% yearly increase in the median price of an existing home, to $121,400 in July from $116,000 a year earlier. The median is the midpoint, meaning half of the homes cost more and half cost less. Regionally, the Midwest posted the only sales increase, up 5% to a 1.06 million annual rate. Sales were down 2.2% in the West to a 900,000 rate; 1.6% in the Northeast to 630,000; and 1.3% in the South to 1.3 million.
