Resales Fall in March

Sales of existing single-family homes fell 2.7% in March, erasing a bump up in February, according to the National Association of Realtors, which has detected in a separate survey that 18% of houses and condominiums for sale have negative equity. Of the 4 million existing homes on the market in March, 18% of those properties were short sales or foreclosures, NAR chief economist Lawrence Yun told reporters. The NAR reported that sales of previously owned single-family homes fell from a seasonally adjusted annual rate of 4.47 million in February to 4.35 million in March, which is off 18% from the sales pace in March 2007. The median sales price stood at $198,200 in March, down 8.3% from that of a year earlier. The NAR economist said he expects to see a pickup in sales in the second half as Federal Housing Administration loan production increases and Fannie Mae and Freddie Mac start purchasing jumbo loans. But he remains cautious about the outlook because mortgage rates "may have already reached their low point." And Mr. Yun voiced concern that any further interest rate cuts by the Federal Reserve could send mortgage rates up by stoking fears of inflation.