NEW YORK (CNN/Money) -
Sales of existing homes in the United States soared in March to the second-highest level on record, a real estate group reported Tuesday, coming in well above economists' estimates in another strong report from the housing sector.
Existing home sales climbed 5.7 percent in March to an annual rate of 6.48 million units, according to the National Association of Realtors. That's up from a revised 6.13 million in February and above economists' forecasts for a reading of 6.2 million, according to Briefing.com.
After the report, and a separate reading showing a jump in consumer confidence, stocks rose and Treasury bond prices backed off on Wall Street.
Tuesday's housing report follows a reading on new home sales that showed the biggest gain in nine months as previously undecided purchasers jumped in since interest rates have started rising. The rise in rates makes home mortgages more expensive.
With the Federal Reserve getting set to raise short-term rates as the job market gains strength, the pace of home sales is due to slow.
"Although interest rates are rising modestly, an improving job market is creating a favorable backdrop for home sales, but at a somewhat slower pace in the months ahead," said David Lereah, chief economist with the National Association of Realtors, in a statement.
Sales of existing homes rose in the West, the South and the Midwest from February while sales were flat in the Northeast.
The housing market has remained one of the strongest sectors in the economy during the recovery as record low interest rates spurred millions of Americans to buy or refinance homes.
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