PHILADELPHIA, Nov. 29 /PRNewswire-FirstCall/ -- The Commerce Department
this morning reported that sales of new U.S. homes in October surged from the
previous month to a current seasonally adjusted annual rate of 1.42 million
units, a 13% increase from September. The increase in October reflects a new-
home market that may be reacting to interest rate increases and concerns about
rising energy prices, according to Paul Fischer, executive vice president with
Radian Guaranty Inc., a provider of mortgage insurance products and services
and subsidiary of the global credit risk management company Radian Group Inc.
(NYSE: RDN).
"The continuation of the Federal Reserve's interest rate increases and the
potential for future rate increases may be motivating borrowers and
homebuilders to settle more quickly on new home construction projects," said
Fischer. "Consumers may be bracing for an uncertain economic environment down
the road. But it's too soon to tell if this morning's report represents a
brief upswing in the overall housing market or a continued upward trend.
Month-to-month new home sales numbers, which are gathered from surveys,
exhibit a lot of volatility. Also, declining energy prices and a greater
availability of affordable credit could be playing a role in this month's
increase."
About Radian Guaranty Inc.
Radian Guaranty Inc. is the mortgage insurance subsidiary of Radian Group
Inc. (NYSE: RDN), a global credit enhancement company headquartered in
Philadelphia. Radian Guaranty provides risk management products and services
to mortgage lenders nationwide; these services increase opportunities for
people to buy homes with little or no downpayment, protect lenders from
default-related losses on residential first mortgages and facilitate the sale
of low-downpayment mortgages in the secondary market. Additional information
may be found at http://www.radian.biz.
SOURCE Radian Guaranty Inc.
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Related links:
http://www.radian.biz
CONTACT:
For investors - Mona Zeehandelaar, Radian,
+1-215-231-1674, email: mona.zeehandelaar@radian.biz; or For the
media - Radian Corporate Communications, +1-888-NEWS-520, email:
media@radian.biz
NOTE TO EDITORS: Paul Fischer, executive vice president for
Philadelphia-based Radian Guaranty Inc., is available for
interviews about this or other topics related to the housing
market, credit enhancement and the mortgage industry. To speak
with Mr. Fischer, or for more information about Radian Guaranty
Inc., contact the Radian 24-hour media line at 888-NEWS-520.
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