Regional Report: Economic Focus / Existing-Home Sales
Mortgage Rates and Weather Give a Boost</br></br>Existing-home sales increased briskly in most regions in the fourth quarter of 2001, even compared with strong sales a year earlier, thanks to low mortgage rates for buyers and unseasonably warm weather for builders. East South Central and Great Lakes states showed the biggest gains as their stabilizing manufacturing sectors prompted workers to go ahead with delayed home-buying plans. Similarly, sales in Rocky Mountain states were boosted by workers' confidence in some of their dominant industries, such as New Mexico's defense contractors. But sales were sluggish at best in economies more tied to the information-technology sector, notably Pacific and New England states that were overbuilt with expensive homes prior to the industry's meltdown in 2000. The good news there: Some prices are down, making some of the nation's highest-priced markets more affordable.</br></br>---</br></br>Percentage change from year earlier in existing-home sales</br></br>(4th Qtr. 2001 vs. 4th Qtr. 2000)