Home Sales Drop 6.6% on Rising Interest Rates
Sales of existing homes fell sharply in October as rising interest rates continued to take a toll on consumers. Nevertheless, sales remain brisk by historical standards and are on track to set a record this year.</br></br>In October, sales declined 6.6%, according to the National Association of Realtors, to a seasonally adjusted annual rate of 4.79 million units. That was down from September's 5.13 million rate and was 3% below the 4.94 million level set in October 1998.</br></br>"An increase in mortgage rates is translating into a slowdown in home sales -- exactly what the Fed wanted" when it raised interest rates three times this year, said Kory Bockman, an economist with the NAR in Washington.</br></br>Still, home sales are likely to top 5.20 million units this year, besting last year's 4.97 million mark and the fourth consecutive record year.</br></br>"It's still a good time to be a Realtor," said Mr. Bockman.