Low Mortgage Rates Boost Home Sales

Sales of previously owned homes, bolstered by falling mortgage rates, rose 0.7 percent in January to an all-time high.

Existing single-family homes sold at a seasonally adjusted annual rate of 4.4 million homes last month, up from a revised 4.37 million units sold in December, the National Association of Realtors said Wednesday.

January sales more than recovered from a slight dip in December and beat the previous record rate of 4.39 million units set in November. Overall, 1997 was the best year on record since the association began tracking home sales in 1968, with sale of 4.21 million previously owned homes.

Sales also are expected to be strong this year, said National Association of Retailers President R. Layne Morrill.

“The outlook is promising. All the factors are in place: a healthy economy, favorable mortgage rates and confident consumers,” said Morrill.