The Cincinnati Enquirer Strong consumer optimism about the economy offset rising mortgage rates and sparked record home sales in Greater Cincinnati in February, the first monthly increase since October. The number of homes sold in Southwest Ohio, Northern Kentucky and Southeastern Indiana rose 2.6 percent in February, to 1,588 from 1,548 the previous February, according to local boards of Realtors. The gain was more intriguing given that mortgage rates are about 1.2 percentage points higher than a year ago, and the number of homes available is 7.4 percent lower than in February 1999.
Local experts say consumers are feeling good about their jobs and a strong stock market.
The Federal Reserve's decision to boost rates five times since June to slow the economy could also eventually slow home sales. Rates locally have dropped slightly since early January, but are still much higher than a year ago. We're seeing more activity for purchases as rates continue rising. Cost-conscious home buyers also are shopping for the most competitive mortgage with the best rates and terms. Sales in Southwest Ohio, accounting for most of the Tristate's sales, led the pace.