Last week, the association predicted that this year would be the second-biggest year, forecasting 5.34 million home resales and 941,000 sales of new houses.

Economists surveyed by Bloomberg Business News expect that home resales fell three-tenths of a percent.

Traders said the morning release of economic reports showing a rise in home resales and manufacturing heightened the anxiety investors evidenced since Wednesday.

But a separate report showed that home resales fell more than expected in April as borrowing costs continued to creep up.

The number of home resales rose to 317,000 units, from 299,000 units in April 1991.

Reports on consumer confidence, durable goods, home resales and personal income and spending will be released this week.

United States home resales surged by 6.5 percent in February, their first rise since October.

In another indicator of economic activity, though, a trade group reported that home resales had declined in June.

The National Association of Realtors reports on home resales for May.

Data released yesterday showed that home resales in February rose 9 percent.