Sales of existing US homes fell by 12.8% last year
Sales of existing US homes fell by 12.8% last year, the biggest annual decline in 25 years, said the country's main estate agency body, BBC World news reported.
In the latest snapshot of the US housing slump, the National Association of Realtors (NAR) also said average prices declined by 1.4% in 2007.
The fall in prices accelerated towards the end of the year, with prices declining 6% in December, said NAR.
The Fed cut interest rates to 3.5% from 4.25% on Tuesday, its biggest reduction in 25 years, as it aims to prevent the US economy falling into recession.