Single-family new home construction permits for metropolitan Kansas City topped the 1,000 mark for just the fourth time on record, according to statistics compiled by the Home Builders Association of Greater Kansas City (HBA). A total of 1,052 single-family new home permits were issued in June, making it the second busiest month on record for local new home construction. June’s total ranks behind only the 1,167 permits issued in March 1999.

Permit activity was up 12 percent in June compared to the same month last year when 936 permits were issued. A total of 5,264 single-family permits have been issued year-to-date, a 7 percent increase from the 4,910 permits issued in the first half of 2002.

The pace of new home construction is on the rise at a time when mortgage rates are creeping upward from record-low levels. According to Freddie Mac, the nation’s average mortgage rate for a 30-year-fixed-rate loan has jumped from a low of 5.21 percent to 5.51 percent during the last month. The rise in mortgage rates is likely to inspire a new round of home sales, according the HBA Executive Vice President Tim Underwood.

“The historic low interest rates not only continue to make now an ideal time to buy a new home, but it also means there are more opportunities for families to take advantage of the benefits of homeownership,” Underwood said. “The recent change in mortgage rates should motivate buyers who have been waiting to buy a home to take advantage of low rates now. Taking advantage of low rates now also means homebuyers can afford more home for their money.”

Underwood said the National Association of Home Builders forecasts mortgage rates to rise slightly during the balance of 2003 and return to the 6 percent level in 2004.

Kansas City, Mo., continues to lead the metropolitan area in single-family permits with 927 permits issued through June. Olathe ranks second with 530 permits, followed by Overland Park with 425 and Lee’s Summit with 405.

Rounding out the top-permitting cities through the first half of 2003 are Shawnee, 312; Raymore, 227; Grain Valley, 198; Independence, 191; Kansas City, Kan./Wyandotte County, 174; and Lenexa, 149.

The Home Builders Association of Greater Kansas City (HBA) is the voice of the housing industry and the source for housing information. Comprising more than 1,000 member companies, the HBA represents an industry that contributes more than $2.5 billion to the Kansas City economy and supports more than 36,000 jobs in the Greater Kansas City metropolitan area.