Celebrate 40 Years of Innovation from the National Council of the Housing Industry

This is the first in a series of three articles recognizing …

Housing Snapshot

Mortgage interest rates moved up slightly last week amidst some glimmers of hope that the economy is now moving out of its summer doldrums, but rates on 30-year loans remained comfortably below 6%. In better than expected news for the economy, the Labor Department reported that the Producer Price Index was down 0.1% in August, leaving it at 3.8% for the first eight months of this year, compared to 4.6% for the same period of 2003. Also a good sign, the U.S. trade deficit dropped 8.9% in July to $50.15 billion, down from a record $55.02 billion in June. Although the July number was the second highest in history, the financial markets viewed it as a good step in the right direction. U.S. exports in July rose 3% to $95.86 billion. On the lumber front, signs of some weakening in prices started to emerge last week. The cost of framing lumber was $458 per 1,000 board feet, $9 below the previous week. The price of 15/32-inch 3-ply sheathing rose $5 to $445 per 1,000 square feet, and oriented strand board remained unchanged at $412.

Mortgage Interest Rates
30-Year Fixed-Rate	5.83%
15-Year Fixed-Rate	5.22%
1-Year ARM	4.00%
Housing Starts - Jul. 2004*
Total	1.978 million
Single-Family Starts	1.651 million
Multifamily Starts	327,000
New Home Sales Jul. 2004*	1.134 million
Existing Home Sales Jul. 2004*	6.72 million
* Seasonally adjusted annual rate