NAR Sees Continued Housing Boom in '04

Inflation should remain low despite accelerating economic growth, keeping mortgage rates low and the housing market near historic highs in 2004, according to the National Association of Realtors.NAR chief economist David Lereah is forecasting annualized growth of 5.6% in the gross domestic product for the current quarter, followed by 4% growth next year. "Many industries, including the hard-hit manufacturing sector, are now facing increased demand, and we can expect strong economic growth into next year," Mr. Lereah said. "With no inflation in sight, we don't expect the Federal Reserve to move on interest rates until the third quarter of 2004." The NAR economist is projecting that next year will be the third-best on record for housing, with 5.48 million existing-home sales and 944,000 new-home sales. That would come on the heels of what he forecasts will be a record year for resales and new homes in 2003, with sales of 5.89 million and 1.05 million, respectively. The NAR can be found online at http://realtor.org.