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COPYRIGHT 2004 FDCH e-media
Original Source: CNBC/DOW JONES BUSINESS VIDEO
JOE KERNEN, CNBC ANCHOR: All right, the Fed has been hiking interest rates, but mortgage rates are still near all-time lows. It has been very confounding, which means that people are still buying homes, looking for mortgages and where are they looking? Where else? Online. Another place I can look. This is Bill Emerson, CEO of Quicken Loans.
I will ask you some very naive questions too if you don`t mind, Bill. People count on me for that.
WILLIAM EMERSON, CEO, QUICKEN LOANS: By all means.
KERNEN: Let me ask you this: I found out last night that existing homes, that market is six times the size of new homes, is that true?
EMERSON: That`s true. Existing homes is about 85 percent of the market. If you do the math, it`s about six times new homes.
KERNEN: So that 12 percent drop last week was not as important as the good gain that we saw on existing homes? Is that what you think to?
EMERSON: I completely agree. It`s not nearly as relevant. When you take a look at existing homes, the size they are in the market, I mean, that`s really going to be your indicator as you go to 2005....
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