Housing Snapshot
Mortgage interest rates last week continued to fall deeper into record low territory, and fixed-rate loans were about one-and-a-half percentage points lower than they were a year earlier. Further discussion from Federal Reserve Chairman Greenspan on the dangers of deflation fueled speculation that another cut in the central bank's overnight lending rate could happen later next month. With $350 billion in tax cuts headed for the pockets of U.S. consumers and businesses, the consensus is growing that economic output in the second half of this year will be decidedly stronger than in the first half. The economy grew at a rate of 1.6% in this year's first quarter; growth in the 3%-4% range is expected in the second half. A surging Euro was good news for U.S. exports but raised questions about the sustainability of Europe's economic recovery. [ MORE ]
Mortgage Interest Rates
30-Year Fixed-Rate: 5.34%
15-Year Fixed-Rate: 4.73%
1-Year ARM: 3.61%
Housing Starts - Apr. 2003*
Total: 1.63 million
Single-Family Starts: 1.36 million
Multifamily Starts: 274,000
New Home Sales Apr. 2003*
1.028 million
Existing Home Sales Apr. 2003*
5.84 million
* Seasonally adjusted annual rate