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Home sales expected to drop

Article

Projected increases in mortgage rates will likely lead to a drop in home sales in 2006, the Mortgage Bankers Association predicts.

Projected increases in mortgage rates will likely lead to a drop in home sales in 2006, the Mortgage Bankers Association predicts. The association expects home sales to dip by 3.5 percent to 4 percent.

Home prices are still expected to rise, though at about half the pace they grew last year. The association expects home prices to increase about 5 percent to 6 percent.

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