Low Long-Term Rates Good for Housing
Mortgage News from Quicken Loans
New construction of U.S. houses increased in May after three consecutive months of declines, the Commerce Department estimated Tuesday. The 5.0 percent increase was stronger than expected by both builders and economists. It was 3.8 percent below the number of single-family homes started in May 2005, however.
"Housing starts are still performing quite well from a historical perspective," said Bob Walters, chief economist at Quicken Loans. "The housing market is influenced by two factors currently present in the economy: low long-term mortgage rates and an improving job market. Consumers interested in buying a home can still take advantage of an environment that remains pro-housing."
This article is reprinted by permission from Quicken Loans © 2006 Quicken Loans Inc. All rights reserved.
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