Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, April 26, 1994 TAG: 9404260136
SECTION: BUSINESS PAGE: C-8 EDITION: METRO
SOURCE: Associated Press
DATELINE: WASHINGTON LENGTH: Medium
Sales totaled 4.06 million at a seasonally adjusted annual rate, compared with a revised 3.84 million a month earlier, the National Association of Realtors reported. The February rate initially was estimated at 3.83 million.
Every region except the Northeast participated in the rebound.
``The recent up-tick in mortgage interest rates combined with pent-up demand has triggered more buyers to make a move now into home ownership for fear that rates might continue upward,'' said Robert H. Elrod, president of the Realtors' association.
Fixed-rate, 30-year mortgages averaged 7.68 percent in March, compared with 7.15 percent a month earlier, according to surveys by the Federal Home Loan Mortgage Corp.
``We are experiencing some catchup in the market from sales that had been deferred during the winter,'' Realtors economist John A. Tuccillo said.
Existing home sales had peaked at a record 4.35 million rate in December, but then dropped 2.3 percent in January and 9.6 percent in February because of the harsh winter. Other areas of the housing industry - sales of new homes and housing starts - also slowed.
Strong demand, coupled with rising consumer confidence, should keep the housing market healthy, Elrod said. ``We anticipate that home sales will hit near-record levels this year.''
The Realtors are forecasting sales of 3.92 million this year, up 3.2 percent from 3.8 million in 1993, which had been the highest since 3.83 million in 1979. Sales in March were up 18.4 percent from a year earlier.
by CNB