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To: 10K a day who wrote (48945)	5/2/2000 12:16:00 PM
From: UnBelievable	Respond to of 99985

New-Home Sales Surge 4.5% Despite Higher Mortgage Rates An INTERACTIVE JOURNAL News Roundup WASHINGTON -- Sales of new homes in the U.S. surged unexpectedly in March to the highest level in more than a year, suggesting that an upswing in mortgage rates isn't sidelining buyers. In a separate report, the Conference Board reported that the index for leading indicators rose 0.1%, on target with economists' forecasts. The Commerce Department said Tuesday that new-home sales rose 4.5% to 966,000 in March, the highest level since November 1998. For the first time on record, sales have been over the 900,000 level for four straight months. Economists surveyed by Thomson Global Markets expected sales to drop 2.1% to 900,000. February's report was revised to show sales reached 924,000 from 919,000. The higher sales suggest that rising mortgage rates aren't discouraging potential home buyers from taking the plunge as the U.S. continues to enjoy strong income growth and a competitive job market. The average rate on a 30-year fixed-rate mortgage was 8.24% in March, up from 7.02% for the same month a year ago. Economists say the demand for homes remains strong, despite the pickup in rates. "Given the overall strength of the economy, and consumers' still-high level of confidence about the future, mortgage rates are simply not high enough to induce a meaningful slowing in home sales," said Ian Sheperdson, an economist at High Frequency Economics in Valhalla, N.Y. The March sales rate is far above last year's average of 907,000. Sales are up 9.6% from last March. The increase in sales helped push up the price of many homes. The median price of a new home -- meaning half sold for more and half sold for less -- rose 3.1% to $165,000, up from February's price of $160,000. March's $165,000 median price was the highest since December, when the median price also was $165,000. The stock of new homes was unchanged in March at 4.1 months, meaning it would take 4.1 months to exhaust supply at March's sales pace. By region, sales rose fastest in the West, rising 12.9% in March. In the Northeast, new-home sales increased 11.5% during the month. Sales rose 5.1% in the Midwest and dropped 1.9% in the South. Index of Leading Indicators Rises 0.1% Meanwhile, a widely watched gauge of future U.S. economic activity rose slightly in March after declining in February, indicating a continued strong economy this year, but not moving at the breakneck speed of the last six months. The index of leading indicators increased 0.1% for March, the Conference Board reported Tuesday. The index dropped 0.3% in February, its biggest decline in four years, but the Conference Board report Tuesday called that a "one-month aberration." In March, five of the 10 indicators that make up the index rose. "The significant increase in the leading indicators during the last six months, tempered only by the financially related pause in February, points to forward momentum in this expansion," Conference Board economist Ken Goldstein said. The index -- which attempts to forecast economic trends for the next three to six months -- was pushed up in March by rising orders for consumer goods, rising stock prices and declining unemployment. It was held down by increasing interest rates and lower consumer expectations. The index of coincident indicators -- which measures current economic activity -- rose 0.4% after holding steady in February.

To: 10K a day who wrote (48945)	5/2/2000 12:27:00 PM
From: Gersh Avery	Respond to of 99985

Yes it was .. the longer one (last couple of weeks) and this morning. We are going up.