Wednesday, July 11, 2007

7/11 - Lucky Day Brings Good Tidings

Housing Bottoming.............

U.S. home loan demand climbs even as rates surge

NEW YORK (Reuters) - U.S. mortgage applications rose last week, fueled by increased demand for home purchase loans even as interest rates hit their highest level in nearly a year, an industry group's data showed on Wednesday. .....

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Rebounding Nicely Next Year...........

Realtors Pare Back Forecast Again,But Project Rebound Next Year

"WASHINGTON -- The National Association of Realtors continued to pare back its forecast for existing U.S. home sales in 2007, while projecting a modest rebound for the struggling housing market in 2008.....

"This should help the overall inventory level to move steadily into a more balanced state," he added. With that in mind, NAR remains sanguine about the housing market in 2008, projecting existing home sales will rise 4.2%, to 6.37 million....

......New home sales are expected to increase at a much more modest pace, with NAR forecasting a 1.4% rise to 878,000 in 2008. "Markets that sharply reduce new construction in 2007 will generally experience respectable price increases in 2008," Mr. Yun said.".....

By BENTON IVES-HALPERIN- WSJ
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