HOUSING MARKET THRIVING; MANUFACTURING CLOUDS ECONOMIC PICTURE.Byline: David Skidmore Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. Home resales boomed to a record last month, but a slump in aircraft demand sent manufacturing orders down, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. reports that demonstrate conflicting crosswinds from Asia's financial turmoil. Sales of existing homes soared 8.7 percent to a seasonally adjusted Seasonally adjusted Mathematically adjusted by moderating a macroeconomic indicator (e.g., oil prices/imports) so that relative comparisons can be drawn from month to month all year. annual rate of 4.75 million in February, the National Association of Realtors The National Association of Realtors (NAR) is made up of residential and commercial realtors who are brokers, salespeople, property managers, appraisers, and counselors, and others working in the real estate industry. said Wednesday. That shattered the monthly record rate, set in November, of 4.39 million. The Realtors are forecasting sales for all of 1998 of 4.27 million, up 1.3 percent from the full-year record set in 1997. Housing and Urban Development Secretary Andrew Cuomo Andrew Mark Cuomo (born December 6, 1957, in Queens, New York) is the New York State Attorney General. He was elected on November 7, 2006. Previously Cuomo was the Secretary of Housing and Urban Development under President Bill Clinton between 1997 and 2001. predicted a record homeownership rate if the trend continues, breaking the 65.7 percent mark set last year. ``More people than ever are getting the opportunity to become homeowners and to move up to improved housing,'' Cuomo said. A variety of factors fueled home buying in recent months, including strong income growth, an unemployment rate at a 24-year low and unseasonably warm weather associated with the El Nino current in the Pacific Ocean. But another important factor has been drops in mortgage rates sustained by investors' flight to quality from Asian to U.S. securities. In fact, a slight uptick in rates in February may have convinced some buyers they shouldn't wait for a better mortgage deal. Wednesday's strong home sales report dampened the bond market, where traders fear excessive growth could produce increased inflation that would erode their investments. The impact of Asia, meanwhile, showed up in the Commerce Department report on orders for big-ticket manufactured goods, down in February for the third time in five months. CAPTION(S): Chart CHART: EXISTING HOME SALES Existing Home Sales An economic indicator of both the number and prices of existing single family houses, condos and co-op sales over a one-month period. Released monthly by the U.S. Source: National Association of Realtors |
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