Trade group sees improved outlook for U.S. housing market

WASHINGTON -- The resiliency of the housing market in a slowing U.S. economy, coupled with a sustained decline in mortgage interest rates, means housing should be stronger this year than earlier believed, according to the National Association of Realtors (NAR).

Dr. David Lereah, NAR's chief economist, said lower interest rates are keeping the housing sector strong. “With 30-year fixed mortgage interest rates a little under 7%, and expected to stay near this level for the balance of the year, we project existing-home sales to nearly match last year's performance,'' he said. “We now expect 5.07 million existing-home sales this year, off only 0.9% from 2000.