P.M. BRIEFING : High Interest Stalls Home Sales

Relatively high mortgage interest rates held sales of existing homes in March to their February rate, the lowest in eight months, a real estate trade group said today.

The National Assn. of Realtors said resales of single-family homes totaled a seasonally adjusted 3.40 million units, unchanged from February.

It was the lowest since a 3.38 million rate last July, but one that the realtors’ chief economist, John Tuccillo, said is sustainable for the rest of the year.

According to the Federal Home Loan Mortgage Corp., 30-year conventional fixed-rate mortgages averaged between 10.22% and 10.34% during March, high when compared to the single-digit rates at the end of 1989.

The realtors said the high rates had a dual effect on the existing home market. In some cases, the group said, consumer uncertainty triggered purchases by prospective buyers fearing higher rates in the future while it curbed sales by others hoping for lower rates in the months ahead.