New Home Sales Dip Despite Low Rates
Mortgage News from Quicken Loans
The U.S. Census Bureau and the Department of Housing and Urban Development announced today that sales of new, single-family homes in February dipped 3.9 percent below January's numbers.
Bob Walters, chief economist of Quicken Loans, says the drop in home sales is not totally unexpected, given the recent turmoil affecting the mortgage industry.
"The fall in new home sales is disappointing, especially coming on the heels of a very positive existing home sales report and given that long-term interest rates have remained near historic lows for a significant amount of time," Walters said. "However, this report is not completely unexpected in light of the current turmoil that has affected the mortgage industry in the last few months. As we enter the spring, which is historically when the real estate market strengthens, I would expect to see an increase in home sales."
This article is reprinted by permission from Quicken Loans © 2007 Quicken Loans Inc. All rights reserved.
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