Existing-Home Sales Fell Again in September
WASHINGTON -- Sales of existing homes fell by 2.1% in September amid rising interest rates, continuing a slide that may indicate the beginning of a slowdown in the domestic economy.</br></br>Although the annual pace of 5.13 million units, seasonally adjusted, is relatively high by historical standards -- and is up 3.4% from September 1998 -- it is down sharply from June's record rate of 5.63 million units, according to the National Association of Realtors. It was the third consecutive decline.</br></br>"The number is down just a little bit, but we're still on pace for a very strong year," said Fred Flick, vice president of economic research for the NAR.</br></br>Economists attribute the decline to the Federal Reserve's recent interest-rate increases and argue that it may help show policy makers that the economy can cool enough without a further rate increase when officials meet on Nov. 16.</br></br>The Fed has already raised rates twice this year-in June and in Augustand economists are trying to figure out whether those moves are working by slowing growth down and, if so, by how much. Economists say it takes months, or sometimes well over a year, for the full impact of a Fed boost to work its way through the economy. But an early reading of whether the policy is having an impact comes from the most interest-sensitive sectors, notably housing and construction.