The U.S. existing home contract sales index fell to a record low in January, as high interest rates and high housing prices weighed on the market

Feb. 27 - An index of contracted sales of existing homes in the United States fell to a record low in January as rising mortgage rates and home prices reduced affordability for potential buyers. The National Association of Realtors (NAR) said Thursday that the sales index fell 4.6 percent last month to 70.6, a record low. "It's unclear whether the coldest January in 25 years caused fewer buyers, and if so, sales activity is expected to increase in the coming months," said Lawrence Yun, NAR chief economist. "But it's clear that rising home prices and rising mortgage rates are seriously eroding home affordability." U.S. home prices rose 4.7 percent in the 12 months to December, according to data released Tuesday by the Federal Housing Finance Agency. Although the Federal Reserve has cut interest rates by 100 basis points since last September, mortgage rates remain stubbornly high.