WASHINGTON -- With mortgage rates rising, existinghome sales stayed flat in the second quarter, compared with the first quarter.
The National Association of Realtors reported that 4.5 million single-family homes, townhouses, and condominiums were resold in the second quarter.
That was up from 4.49 million in the first quarter, according to seasonally adjusted data.
In the tug-of-war between a growing economy and rising interest rates, the high rates seem to be winning, said David Lereah, chief economist of the Mortgage Bankers Association.
Home Sales Stalled
The Federal Reserve is getting what it wants, Mr. Lereah said. The housing sector, which is the most sensitive to rate changes, is slowing down.
Home sales are stalled, agreed John Tuccillo, chief economist at the Realtors group.
Other recent housing data confirm this trend, Mr. Lereah said.
The Department of Commerce has reported that housing starts fell 10% in June, compared to the May level, and that new-home sales dropped 14% at the same time. Mr. Lereah said he expects sales to fall in the third quarter also, as interest rates climb some more.
Northeast Resales Flat
Second-quarter resales in the Northeast were flat from the 700,000 units logged in the first quarter. In the West, they fell 2.8%, to 1.01 million units.
Resales posted modes increases in other regions. They were up 3.7%, to 1.12 million, in the Midwest, and up 2.4%, to 1.7 million, in the South.
The Realtors group expects resales this year to be the secondhighest ever, despite the present flatness, Mr. Tuccillo said
Compared with sales in the corresponding period last year, existing-home sales were up 13.6% nationally, the group said.
Median Price Up 3.3%
Separately, the group announced that the median home price rose to $110,600, up 3.3% in the second quarter from the corresponding period last year.
Another survey released last week by Fannie Mae and Freddie Mac found that median home prices had appreciated slightly more - 3.9% during the past 12 months.
That survey was based on sales or appraised values of 4.5 million repeat transactions, whose loans are held by the secondary market agencies.
