NAHB Forecasts Record New-Home Sales

The National Association of Home Builders has revised upward to 985,000 units its forecast for new single-family home sales this year, which would break last year's record of 973,000.The association is projecting that long-term mortgage rates will average 5.3% for this quarter and rise slowly to an average of 5.5% in the fourth quarter. "Home sales actually have strengthened in the wake of the war, and are now on track to beat our previous forecasts and support the economy over the balance of the year," NAHB president Kent Conine said. "Two key factors for our upbeat outlook include the successful passage of President Bush's economic stimulus package, which will strengthen job and income growth in the second half of the year, and the recent cut in interest rates by the Federal Reserve, which will help maintain very favorable interest rates on home mortgages." The association can be found online at http://www.nahb.com.