P.M. BRIEFING : Sales of Existing Homes Up 5.9%

Sales of existing homes rebounded 5.9% in June after five months without a gain, a real estate trade group said today, attributing the rise to a decline in mortgage rates and falling prices.

The National Assn. of Realtors said existing single-family homes sold at a seasonally adjusted annual rate of 3.40 million units in June, up from May’s rate of 3.21 million units. It was the first increase in sales since December, 1988, and the largest increase since December, 1986, when sales rose 6.6%.

The group also noted what it described as a small increase in the median sales price, which was $93,200 in June, up $600 from May and 3.2% from a year earlier.

According to the Federal Home Loan Mortgage Corp., fixed-rate mortgages peaked at 11.22% in late March and have been falling since, hitting 9.87% last week.

Economist Richard Peach of the Mortgage Bankers Assn. of America said he expects sales to recover modestly through the rest of the year. But, he said, sluggish economic and job growth overall will prevent a strong resurgence.