The volume of sales of existing homes in the U.S. jumped by more than expected in the closing month of the first quarter, boosting hopes that the housing market may begin to recover, according to Reuters. On Wednesday, the National Association of Realtors reported that sales of previously owned homes in the U.S. rose by 3.7% in March to an annual rate of 5.10 million units, outpacing economists’ forecast for a 2.5% increase.Te initially reported annual rate of 4.88 million for February was revised up to 4.92 million.
The gain marked the sixth increase in the past eight months, and Pierre Ellis of Decision Economics said, “It’s slow steady progress,” and added, “Demand is rising even with higher mortgage rates so that’s encouraging.” Citing low reading for housing starts and building permits, Krishen Rangasamy of CIBC World Markets warned, “A sustained turnaround in the housing market is still far off,” and home prices dropped 5.9% in March from a year earlier and the gain monthly sales gain only brought existing homes sales to a 6.3% year-over-year decline. Separately, the Mortgage Bankers Association said its purchase index for home loans rose 10% last week to 210.8, which is the highest level in four months.
