Sales of Existing Homes Slip 1.6% as Mortgage Rates Go Up

Existing home sales declined 1.6% the first quarter, a real estate group said today, as mortgage rates anchored themselves in double-digits and prices in many areas continued to rise.

The National Assn. of Realtors said the median price of existing homes rose 5.2% to $95,900, up from $95,000 from October through December and $91,200 during the same period of 1989. The median price means half of the homes cost more, half less.

Mortgage rates moved up as well, ranging from 9.83% as the year began to 10.22% as the quarter ended, according to the Federal Home Loan Mortgage Assn.

The Realtors said sales are expected to remain stable this year.

The survey showed 29 states with increased sales, led by South Dakota with a 49.1% gain, while Vermont was at the bottom of the list with a 24.8% decline.

The West posted a 3% sales increase to an annual rate of 680,000 units, followed by the South, up 0.7% to 1.46 million units. The Northeast has the largest decline, down 5.5%.

The West also experienced the sharpest gain in median prices, up 7.6% to $143,700.