Sales of Existing U.S. Homes Drop

February 26, 2001 10:00 AM, EST

Sales of previously occupied U.S. homes dropped 6.6% in January, the second straight monthly decline, the National Association of Realtors reported Monday.

When home sales drop, business for trucking companies that haul furniture also declines.

January’s home sales sank to a seasonally adjusted annual rate of 4.65 million units, the lowest since 4.54 million in January 2000.

The Associated Press noted that people bought fewer homes because of low consumer confidence about economic conditions.

However, the housing market has not taken as much of a hit as other parts of the economy, such as manufacturing. The housing market has remained solid because of lower mortgage rates, the wire service noted.

In January, the Federal Reserve cut interest rates by one percentage point to avoid a further slowdown in the economy and possibly avoid a recession.

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