Housing Starts See Decline in Latest Study
Mortgage News from Quicken Loans
The U.S. Census Bureau and the Department of Housing and Urban Development announced today that the number of privately-owned housing starts decreased in July.
This morning the U.S. Census Bureau and the Department of Housing and Urban Development announced that for the month of July, privately owned housing starts decreased 6.1 percent from June's levels. The report also showed that housing starts were 20.9 percent below the July 2006 level.
Quicken Loans Chief Economist Bob Walters says while housing starts have seen a decline, there is still a glut of unsold homes on the market and once the market regains stability we will see housing starts increase.
"I'm not really surprised to see that housing starts slowed last month. There's an abundance of new and existing homes on the market and many buyers are taking a "wait and see" before buying a home. As a result, builders are pulling back as they wait for the current inventory to match demand," Walters said. "What's been overlooked in all the negativity about the mortgage market is that most consumers have great credit and can qualify for loans with great rates. There's a buyer's market out there and I expect once that message gets out, we'll see housing starts and home sales pick up."
This article is reprinted by permission from Quicken Loans © 2007 Quicken Loans Inc. All rights reserved.
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