White House Sees Slow Drop for Home Sales

Published on:
12 September 2006 at 10:20 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00004414-white-house-sees-slow-drop-for-home-sales/

By Jeannine Aversa, Associated Press

The high-flying housing market should make a safe landing by gradually losing altitude, the White House suggested Monday.

Housing has been an important source of power for the economy as home sales hit record highs in the past five years running. Low mortgage rates were a factor behind brisk housing activity.

“A gradual slowing of homebuilding appears more likely than a sharp drop because the elevated level of house prices will sustain homebuilding as a profitable enterprise for some time,” according to President Bush’s annual economic report to Congress.

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