Sales of existing homes begin to rise

Home sales increased 5.5% last month from August and 1.4% from a year earlier to a seasonally adjusted rate of 5.18 million units, according to data from the National Association of Realtors. The increase follows a 2.2% monthly decline in home sales reported in August. While home sales increased, their prices continued to plummet. The median price of homes last month was $191,600, down 9% from a year earlier. “The credit markets are not settled yet, although the mortgage market stabilized with the government takeover of Fannie Mae and Freddie Mac. Inventory remains high, and price declines are pressuring owners,” Lawrence Yun, chief economist for the Chicago-based National Association of Realtors, said in a statement. The average rate of a 30-year fixed-rate mortgage fell to 6.04% in September, from 6.48% in August, according to Freddie Mac of McLean, Va. Fannie Mae is based in Washington. Total housing inventory at the end of last month fell 1.6% from August to 4.27 million homes available for sale, which represents a 9.9-month supply at the current sales pace, down from a 10.6-month supply in August. Regionally, home sales increased 16.8% in the West, 4.4% in the Midwest and 2.2% in the South between August and last month. Home sales fell 1.2% in the Northeast.