Home resales seen falling 8 percent

Home resales seen falling 8 percent: "CHICAGO -- April 11, 2006 -- Freddie Mac anticipates an 8-percent decline in home sales to 6.9 million units in 2006 from 7.5 million last year, due to higher interest rates and price gains that make homeownership less affordable to a larger number of buyers.

Freddie Mac chief economist Frank Nothaft says it is increasingly difficult for some homebuyers to locate jobs in areas where housing is affordable or locate reasonably priced housing in areas where jobs are more plentiful.

The government-sponsored enterprise expects residential prices to rise just 8.7 percent this year, marking the lowest appreciation rate in three years. A 13-percent drop in single-family mortgage originations to $2.46 trillion is also forecasted, attributable to weaker demand for refinance loans as mortgage rates move upward.

Source: Chicago Tribune (04/11/06)"