Existing-Homes Sales Slip in January

Existing-home sales eased slightly in January with some potential buyers trying to time the market and others waiting for higher loan limits on conventional financing, according to the NATIONAL ASSOCIATION OF REALTORS®.

Existing-home sales — including single-family, town homes, condominiums, and co-ops — slipped 0.4 percent to a seasonally adjusted annual rate of 4.89 million units in January from an upwardly revised level of 4.91 million in December. Existing-home sales are 23.4 percent below the 6.44 million-unit pace in January 2007.“

Subprime loans and other risky mortgage products have virtually disappeared from the marketplace, and over the past five months, this has been reflected in soft but fairly stable home sales,” says Lawrence Yun, NAR chief economist. “As the increased limits for FHA and conventional loans are implemented, more buyers will have access to safer FHA loans and lower interest rate loans in high-cost areas, which could lead to steadily higher home sales later in the year.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.76 percent in January from 6.10 percent in December. The rate was 6.22 percent in January 2007. Last week, Freddie Mac reported the 30-year fixed rate rose to 6.04 percent.

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