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THE ECONOMY.(A)

Investor's Business Daily

| August 03, 2004 | COPYRIGHT 2004 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Housing affordability falls in Q2

Families earning the median income had 133.6% of the funds needed to buy a median-priced home in Q2, down 10.5% from Q1's 144.1%, the National Association of Realtors said. Affordability fell to the lowest level since '02, which still saw a then record for home sales. Home buyers faced an average mortgage rate of 5.73% in Q2, up from 5.64% in Q1.

** Median-family income in Q2 rose 0.67% from Q1 to $54,884, as a median-priced home rose 7.6% to $183,800, the National Association of Realtors said.

WTO still has much work ahead

A last-ditch deal over the weekend between the WTO's 147 members saved the latest round of trade liberalization talks from failure. But analysts and business organizations warned that the established framework was short on detail and put off many of the hardest decisions.

Global factory activity up in July

A Reuters gauge of manufacturing activity in the 12-nation euro zone rose to 54.7 in July, up from 54.3 in June ...

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