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The U.S. Census Bureau and the Department of Housing and Urban Development announced today that sales of new, single-family homes in April jumped 16.2 percent compared to March's numbers.

Bob Walters, chief economist of Quicken Loans, says that that the low interest rates and favorable financing are driving the considerable jump in new home purchases.

"Today's report showing new home sales expanding last month by 16.2 percent is welcome news. In addition to low fixed rates, homebuyers are taking advantage of the incentives offered by builders as a result of the current abundance of available homes," said Walters. "While inventories currently remain elevated, I anticipate sales consolidating at current levels for a while before ascending again. Gradually the housing inventory will shrink as we move through the spring and summer home buying seasons."

This article is reprinted by permission from Quicken Loans © 2007 Quicken Loans Inc. All rights reserved.