A lower U.S. home sales was forecasted by the National Association of Realtors on Tuesday for 2006 and called on the Federal Reserve.

On the other hand, Federal Reserve to stop raising interest rates because parts of the housing market are vulnerable." David Lereah, the group's chief economist, said that experiencing a slowing from a hot market is a good thing because we need a solid housing sector to provide an underlying base to the economy, and slower appreciation will help to preserve long-term affordability

He reported that sales of new homes should decline 13.4% to 1.11 million from a record 1.28 million in 2005. Sales of new homes should decline 13.4% to 1.11 million from a record 1.28 million in 2005. This is below the group's earlier forecast of 6.62 million existing home sales and 1.13 million new homes sales in 2006. The market began to slow last year as mortgage rates started to climb. The national median existing-home price for all housing types is forecast to rise 5.3% to $231,300.

By M. Sese
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