Strong demand is blunting the effect of hgigher interest rates, with sales of existing single-family homes rising 2.8 percent in June 2000 to 5.23 million units from a 5.09-million pace in May. "Even with the higher level of interest rates we've been experiencing this year, we're seeing more sales as the inventory shortage becomes less of a problem," says NAR President Dennis R. Cronk.