Sales of New Homes in U.S. Rose More Than Forecast in April
By Lorraine Woellert - May 23, 2012 10:14 AM ET
Demand for new U.S. homes increased more than forecast in April as low mortgage interest rates and an improving economy drew buyers.
Purchases rose to a 343,000 annual rate, up 3.3 percent from a revised 332,000 in March, the Commerce Department reported today in Washington. The median forecast in a Bloomberg News survey of economists was 335,000. Data released yesterday showed sales of existing homes rose in April in every region
Job growth, affordability and record-low interest rates are bringing single-family homes within reach of more buyers, chipping away at a weakness in the world’s largest economy as risks from Europe’s debt crisis climb. At the same time, banks remain reluctant to lend and foreclosures continue to move through the system, which means a sustained housing recovery will take time to develop.
“It’s very clear now that the housing market has turned a corner,” said Richard DeKaser, deputy chief economist at Parthenon Group LLC in Boston. “The only question is how strong the rebound is going to be. It bodes well for the broader economy.”
Stocks held earlier losses after the report amid concern that Greece may leave the euro as the region’s leaders meet in Brussels. The Standard & Poor’s 500 Index dropped 0.7 percent to 1,307.13 at 10:14 a.m. in New York.
more:
http://www.bloomberg.com/news/2012-05-23/purchases-of-new-homes-in-u-s-rose-more-than-forecast-in-april.html
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