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By Adelia Cellini Linecker
Investor's Business Daily
Go figure the economy. It's heading south, yet home builders such as MDC Holdings Inc. are posting record growth.
Why? Analysts point to lower interest rates and a bounce back in consumer confidence.
MDC's February home orders rose 29% to 1,031 units vs. 798 a year ago. They were the strongest monthly figures in the company's history.
After several months of souring confidence, analysts say consumers now are upbeat about the economy and job prospects. And rising rental costs are making it easier for first-time buyers to take the plunge.
But lower interest rates are the key growth driver for MDC, which builds andsells homes under the name Richmond American Homes.