Thursday, November 17, 2005

Wall Street Worries

From Ellen Simon of the Associated Press:
... Closely watched housing data was less upbeat. Home construction in October plunged by the largest amount in seven months and building permits posted their biggest drop in six years, providing dramatic evidence that rising mortgage rates are beginning to dampen the housing boom.

The home construction decline was double what analysts expected and indicated that rising mortgage rates, which hit a two-year high last week, are beginning to take a toll on housing. Analysts fear a sudden burst of the housing bubble could hurt consumer spending in the best case scenario and push the country into a recession in the worst case scenario.
This on the heels of yesterday's decline in builder confidence, as reported by the National Association of Home Builders.
— The Boy in the Big Housing Bubble