All of June's housing statistics are in, and there is no sign yet of
New-home sales jumped almost 4% from May to a seasonally adjusted annual
Home building also was up; the seasonally adjusted annual pace of
Existing-home sales dipped slightly, though their annual pace-4.72
"The housing market continues to boom," said Mark Zandi, chief economist
He now predicts sales will not slow until yearend.
"The Asian crisis has helped to extend the housing boom for six to 12
Forecasts of slowing home sales this year had assumed that interest
A reduction in U.S. growth and U.S. exports to Asia has also contributed
David Lereah, the chief economist at the Mortgage Bankers Association,
The index suggests that home sales remained strong in July, he said.
When sales and building eventually decline, the drop will be all the
The MBA predicts housing starts will fall about 10% next year, from an
Existing-home sales, which are expected to hit a record 4.58 million,
And new sales are forecast at 739,000, 13% below the 850,000 expected
But even such reduced activity would not constitute a housing recession,