Lower Rates Boost Home Sales

Cheaper borrowing costs encouraged Americans to snap up existing homes in August, giving sales their biggest boost in 14 months. But economists said the rebound won’t deter the Federal Reserve from leaving interest rates unchanged at its meeting next week.

The National Association of Realtors reported Monday that sales of previously occupied homes shot up by 9.3 percent last month to a seasonally adjusted annual rate of 5.27 million.

In August, the average interest rate on a fixed-rate 30-year mortgage was 8.03 percent, down from 8.15 percent in July.