The first article, Mortgage rates at lowest level in six months, from MSNBC.com, reports that rates on 30-year mortgages dipped this week to the lowest level in six months, standing at 6.31 percent for a 30-year fixed-rate mortgage, down from 6.40 percent last week. The downward trend is occurring because financial markets became more convinced that a slowing economy will keep inflation contained. Such a slowdown will allow the Federal Reserve to keep interest rates on hold. Many analysts believe rates will hover around current levels for the rest of the year, which is expected to help the housing industry level off after sharp declines in recent months. "Both lower interest rates and a moderation in house price growth should lead to increased housing affordability," said Frank Nothaft, chief economist for Freddie Mac.

http://www.msnbc.msn.com/id/7148582/

The second article, New-home permits still falling in Valley, from the Arizona Republic, reports that new home permits fell 15.9 percent from July to August in the Valley, recording just 3,014 new permits, according to the latest Phoenix Housing Market Letter produced by local housing analyst RL Brown. The 3,014 new-home permits in August is down 46 percent from a year earlier. Closings fell 15.9 percent to 4,055 last month from a year ago. Buyers purchased 7,322 existing homes last month, down 46 percent from August 2005. New home permits through August are 33,578, down 23.4 percent from 2005. Last year, the Valley set a record with 63,570 new home permits. Builders are beginning to react to the market and getting rid of inventory. "If the housing industry reacts with the skill that we have seen recently exhibited... (then) this market correction will be short-lived," said RL Brown.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/0929biz-homebuilding0929.html

The third article, Homes to rise west of Loop 303, from the Arizona Republic Glendale, reports that Kohner Properties plans to develop a 452-acre parcel of farmland into a new master-planned community called Turning Leaf at the Meadows. The land, located near Northern and Cotton Lane, will have 1,100 single-family homes, parks, trails and a school. It is Glendale's largest residential project in more than a decade. "People used to consider the (Loop 303) as 'way out west', but it isn't anymore," said Shawn Kohner. "Eventually, it will be its own suburb with a mall, commercial sites and car dealerships. It is truly an area of town that will become its own metropolitan area." Construction should begin in about 18 months after the city approves construction plans.

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