Rising mortgage rates likely to make stocks bounce in housing industry; Job growth, financing options may moderate fluctuations.(News)

Crain's Detroit Business, June, 2004 by Smith, Jennette

Byline: Jennette Smith Companies tied to the housing industry expect stock price fluctuations and possible shifts in business as mortgage rates creep up. Job growth and alternative financing options, though, are expected to temper the effects. Al Koch, chairman, president and CEO of Auburn Hills-based Champion Enterprises Inc., (NYSE: CHB) said to the extent that manufactured-home buyers use conventional mortgages, some buyers may seek less-expensive homes.

"It won't push them out of the housing market, but it will push them into a lower-cost product in order to afford the monthly payment,'' Koch said. Overall, rising rates won't hurt and could benefit Champion as some buyers migrate to manufactured housing from site-built, Koch said. Champion is...

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