20 July 2004, 16:22  US June housing starts seen rising

Housing starts likely rose slightly in June as people looked to take advantage of comparatively low mortgage rates ahead of expected interest rate hikes in coming months, analysts said. Mortgage rates had been trending higher, along with expectations the Federal Reserve bank would raise interest rates. But rates eased slightly since the end of June, with some confidence the Fed will tighten at a gradual pace. According to economists polled by , housing starts likely rose to 1.990 million in June from 1.967 million in May. The seasonally adjusted annual rate of building permits probably fell in June to 2.018 million from a revised 2.097 million in May, according to the poll. Data released on Monday showed The National Association of Home Builders/Wells Fargo Housing Market index edged down a single point in July, but the NAHB said home sales continue to run hot this summer. The NAHB said single-family home builders remain largely upbeat regarding conditions in the new-homes market, with some help from the recent modest retreat in mortgage rates. The June housing starts and permits data will be released by the Commerce Department on July 20 at 8:30 a.m. EDT (1230 GMT).///

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