The U.S. Census Bureau and the Department of Housing and Urban Development announced today that In September 2005, sales of new, one-family houses were at a seasonally adjusted annual rate of 1,222,000, which represents a 2.1% increase over the revised August rate of 1,197,000. However, sales were relatively flat compared to September 2004, coming in at an estimated 0.1% below last year's annual rate of 1,223,000.

"Housing's performance is tied to two key economic indicators: employment and long-term interest rates," says Bob Walters, Chief Economist for Quicken Loans. "While short-term rates have steadily risen under current Federal Reserve policy, long-term interest rates remain at near-historic lows. When you add low long-term interest rates to a better-than-expected employment rate, the combination fuels strong consumer demand for housing.