NCHI Members Mark 40 Years of Progress in America’s Housing

This is the second in a series of three articles recognizing the National Council of the Housing Industry’s 40th anniversary …

Housing Snapshot

In what is becoming a familiar up and down pattern within a fairly narrow band reflecting the most recent indications of economic activity, mortgage interest rates profited last week from good news on the inflation front, with some decline in the cost of both 30-year and 15-year financing. Adjustable mortgage interest rates were up slightly. The Commerce Department reported that the Consumer Price Index was up a scant 0.1% in August, following a decline of 0.1% in July. So far this year, inflation has been running at a rate of 3.7%, compared with an inflation rate of 1.9% in 2003. While the economy appears to be continuing to gain momentum following a slowdown this summer from rising energy prices, the Commerce Department reported that retail sales were off in August, primarily because of softness in automobile sales. Oil prices were up over $45 a barrel as the new business week commenced. The lumber industry last week offered largely favorable news on prices. The cost of framing lumber was down $27 to $431 per 1,000 board feet, up from $375 a year earlier, according to Random Lengths. The price of 15/32-inch 3-ply sheathing remained unchanged at $445 per 1,000 square feet, and oriented strand board was down $22 to $390.

Mortgage Interest Rates
30-Year Fixed-Rate	5.75%
15-Year Fixed-Rate	5.13%
1-Year ARM	4.03%
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