July Round-Up: Homes Sales Strong, But Not A Record Despite generally higher mortgage rates, sales of single family homes last month moved back up by about 2.8 percent - suggesting that if sales continue at this pace there will be some 5.23 million homes sold in 2000. Last year at this time the pace was close to 5.6 million homes and the year ended with record sales. Most economists believe 2000 will not be a record year and the pace should fall off as the buying season wanes. According to the National Association of Realtors, the national median existing-home price was $139,800 in June, up 2.1 percent from June 1999 when the median price was $136,900. Does another rate increase loom ahead? According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 8.29 percent in June, down from 8.52 percent in May. A year ago, however, the average rate was 7.55 percent. While most consumers and housing leaders hope the Fed is done raising rates- which Chairman Alan Greenspan has intimated may be the case - the latest numbers from Washington showing 5.2 percent growth in the economy may be inflationary enough to make Greenspan reconsider. Most pundits believe if there is another rate increase, it will come toward the end of the year. A chicken in every pot, a home around every family There are more homeowners in America now that at any time in history - and it's not just because there are more Americans now that at any time in history. In Washington, the Department of Housing and Urban Development reports that 67.2 percent of American households were homeowners in the second quarter of 2000 - a whopping 70.7 million families. Previously, the highest ownership rate was 66.8 percent. The Clinton Administration is taking credit for the increase, noting that when the Democrats took office in 1993 the homeownership rate was 64 percent. Clinton had set a target of 67.5 percent homeowners by the time he leaves office early next year - and most insiders believe that target will be reached. A well-connected country According to the A.C. Nielsen Internet ratings, about 49 percent of all American homes can now access the Internet - meaning that roughly 134.2 million Americans can now connect to each other. A spokesman for Nielsen said Web access had risen 6 percent since December, primarily because of decreasing costs of computers and online services. If you live in a house, you're involved in politics A number of housing organizations have combined to ask the country's political candidates to focus their campaigns on housing issues - such as affordability, availability and the sanctity of the mortgage interest deduction. The five groups are the National Association of Realtors, National Association of Home Builders, American Bankers Association, America's Community Bankers and the Mortgage Bankers Association. The groups have asked both Al Gore and George Bush to adopt their White Paper, "Housing Policy for the 21st Century," as part of their platforms. "The task of meeting the nation's housing needs is more difficult today because there are fewer government resources and more complicated and burdensome regulations administered by various layers of government," the White Paper says. | 
