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U.S. home sales fall
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February 26, 2001: 10:49 a.m. ET
Declining consumer confidence blamed for January drop in home sales
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NEW YORK (CNNfn) - Sales of existing homes fell last month in the United States, a real estate group reported Monday, blaming a slide in consumer confidence and the overall slowdown in the nation's economy.
Sales of previously owned homes fell 6.6 percent in January to an annual rate of 4.6 million, the National Association of Realtors said. The number came in below Wall Street forecasts for a reading of about 5 million homes.
The housing sector has been one area of the U.S. economy that has held up relatively well amid the slowdown facing the country. But another drop in consumer confidence last month offset the benefits of lower interest rates, the real estate group said.
"For two consecutive months we've had big drops in existing home sales – this results from a decline in consumer confidence and the deteriorating economy," said David Lereah, the group's chief economist.
"Although home sales remain strong in comparison with other sectors of the economy, we think lower mortgage interest rates will keep the market from sinking into a serious decline," he said.
The national median price of an existing home was $136,600 in January, up 2.7 percent from January 2000, the association said.
Housing inventory levels fell 1.4 percent at the end of January, with 1.38 million existing homes available for sale.
Wall Street is awaiting a report on February consumer confidence figures Tuesday morning. Analysts are expecting another sharp decline, as consumers rein in their spending amid worries about the outlook for the economy.
The U.S. Federal Reserve slashed interest rates twice last month in an effort to reinvigorate the economy. Many economists predict another rate cut at the Fed's March 20 policy meeting, if not before. 
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