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The Realtors' group forecasts that sales of previously owned homes will reach 5.2 million this year. That's 11 percent higher than in 2012 and near levels that are considered consistent with a healthy market. But the group expects sales will likely hold at that level in 2014. The average rate on a 30-year fixed mortgage fell this week to 4.32 percent, down from 4.5 percent the previous week and lowest in two months. The drop comes after the Federal Reserve last week decided against reducing its $85-billion-a-month in bond purchases. The Fed held off after lowering its outlook for economic growth. A key reason for its decision was the sharp increase in interest rates. Pulling back on its bond purchases could have sent such rates even higher.
[Associated
Press;
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