Last month's sales of existing homes climbed by 4.6%
Sales of previously owned homes jumped a robust 4.6% in May as the housing recovery continued to regain steam amid continued low interest rates and strengthening job growth.</br></br>Existing-home sales rose to a seasonally adjusted annual rate of 3,610,000 from a revised pace of 3,450,000 in April, according to the National Association of Realtors. All regions posted gains from April.</br></br>The sales increase was the biggest since December, and marked the second consecutive month of gains after three straight months of declines that housing analysts blamed largely on bad weather in many parts of the country. Indeed, analysts attribute a part of the current resurgence to better weather. But they also credit interest rates that have remained below 8%, as well as improvements in job growth.</br></br>"When you combine low interest rates with stronger job growth, that's a perfect environment for the housing market," said Mark M. Zandi, chief economist for Regional Financial Associates, Inc., a consulting firm based in West Chester, Pa. Mr. Zandi added that consumer confidence remains shaky, however, amid uncertainty over the economy and the tax implications of President Clinton's economic plan.</br></br>For now, at least, all indications point to healthy sales through the summer. Though the economy is growing, it is doing so at such a slow pace that inflation no longer seems an immediate threat. That helps keep interest rates down. The 30-year, fixed-rate mortgage fell Friday to a 21-year low of 7.37% from 7.43% the week earlier, according to HSH Associates, Inc., a Butler, N.J. mortgage publishing firm.