Trade Group Expects Fewer New-Home Sales

Americans are expected to buy fewer newly built homes next year, according to the National Assn. of Home Builders. The trade group projects that 781,000 new single-family homes will be sold in 1999. That’s down from the 870,000 homes projected for this year, a record high. According to the group, the 1998 new-home market benefited from low interest rates, a strong job market and high consumer confidence. Housing starts and sales are expected to slip next year, the NAHB said, predicting that the overall U.S. economy will slow. The group said it expects the average rate for a 30-year, fixed-rate mortgage to fall from the 1998 average of 7% to 6.5%.