Home sales plunge in March
Story By: Bea Karnes
Source: AP
An industry group says pending U.S. home sales fell to a new low in March. It is a sign that the housing market has continued to struggle as the spring selling season gets under way.
The National Association of Realtors says pending sales for existing homes fell to 83.0 from a downwardly revised February reading of 83.8, the index's previous low. The index stood at 103.9 in March 2007.
A reading of 100 is equal to the average level of sales activity in 2001, when the index started. Falling home prices and a tight credit environment have kept the housing market under pressure.
The trade group predicts existing home sales activity and the economy will pick up in the second half of the year as larger home loans backed by the Federal Housing Administration become more widely available. The FHA recently raised the mortgage limits for loans it guarantees.
