Housing Snapshot
Mortgage interest rates slipped downward again last week, reaching their lowest levels in roughly six months, Freddie Mac reported, a further sign that new home sales and single-family housing construction will set new records this year. General economic news for the week was good, as well. The economy grew by 3.7% in the third quarter, up from 3.3% in the second quarter, but a bit lower than many economists had predicted. The Commerce Department reported a 0.6% increase in consumer spending in September, following a 0.1% decline in August. However, after-tax incomes increased by only 0.1%, raising some concerns that the consumer buying spree will be unsustainable without more lift from the jobs market. Unemployment claims increased by 20,000 last week. The manufacturing sector grew for the 17th consecutive month in October, although at a slower pace than the month before. News on the lumber front was largely good. Framing prices dropped from $365 per 1,000 board feet to $358, compared to $321 a year earlier, according to Random Lengths. The price of 15/32-inch 3-ply Southern (west-east) exterior sheathing fell from $290 to $280 per 1,000 square feet, compared to $520 for the same week last year. Oriented strand board rose from $215 to $230, but was still far below the $465 charged a year earlier. [ MORE ]
Mortgage Interest Rates
30-Year Fixed-Rate: 5.64%
15-Year Fixed-Rate: 5.01%
1-Year ARM: 3.96%
Housing Starts - Sep. 2004*
Total: 1.898 million
Single-Family Starts: 1.540 million
Multifamily Starts: 358,000
New Home Sales Sep. 2004*
1.206 million
Existing Home Sales Sep. 2004*
6.75 million
* Seasonally adjusted annual rate
