This morning the National Association of Realtors announced existing-home sales declined in July from a record in June, however home prices continue to rise at double-digit rates.

Total existing-home sales ? including single-family, townhomes, condominiums and co-ops ? slipped 2.6 percent in July to a seasonally adjusted annual rate of 7.16 million from an upwardly revised record of 7.35 million in June. Sales were 4.7 percent higher than the 6.84 million-unit pace in July 2004.

"Existing home volumes are down a touch, but overall they remain high and that is due largely to the drop in interest rates in May," says Bob Walters, Chief Economist of Loans. "Generally, there is a lag between rate changes and their impact on housing volumes. The industry will probably see volumes drop a bit more in the upcoming months following the Fed boosting the Fed Funds rate earlier this month, but overall housing is going to continue to stimulate the economy and progress along at a near-record pace."

Publish Date: 08/23/2005