US home sales slump; no relief expected from Fed

0 Comments | AFP, June, 2007

WASHINGTON (AFP) — Sales of existing US homes fell in May to their lowest level in four years, dashing hopes for a rebound in the struggling property market, an industry report showed Monday.

The National Association of Realtors (NAR) said existing home sales dropped 0.3 percent to an annualized pace of 5.99 million last month. Most economists had forecast a sales clip of 6.00 million properties.

The snapshot also showed that the glut of millions of homes flooding the market rose to a record high for a second straight month.

Its release comes days before Federal Reserve policymakers are due to deliberate US interest rates, although most Fed-watchers expect the central bank to keep rates on hold amid fears about inflationary pressures.

"The housing...