US existing home sales fall

The short supply of housing in the United States pushed prices up sharply in September, causing sales of existing homes to drop, according to new industry figures released Tuesday. While low interest rates are enticing buyers to purchase new houses, townhouses or condominiums -- a third of them first-time home buyers -- rising demand is driving prices higher, according to the National Association of Realtors.

The latest NAR report showed sales of existing homes fell 2.2 percent compared to August, to 5.38 million at a seasonally adjusted annual rate, well below what economists had expected.