Thursday, June 22, 2006

Solid Housing Data Helped Soothe Some Concerns

Construction rises in May 2006.

Construction of new homes and apartments, down for three straight months, staged what may turn out to be a temporary rebound in May 2006.

Despite the one-month improvement, analysts said higher mortgage rates would continue to buffet the once high-flying housing market for the next two years. But they said potential home buyers could see some benefits in the form of more builder incentives being offered.

The Commerce Department reported that builders started construction at a seasonally adjusted annual rate of 1.957 million units last month, a better-than-expected 5 percent gain from April when construction had fallen 5.5 %.

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