Feeling Good about our Decision
Adam & I decided about a week ago that we would forgo house hunting until next Spring. We're not happy with anything that's out there and are sick of looking. Seeing this article today gave me increased confidence in our decision.....
WASHINGTON (MarketWatch) - The outlook for U.S. home building is the worst in 16 years, the National Association of Home Builders reported Monday. The builders' housing market index fell by two points to 28 in June, the lowest since February 1991.
The market probably won't turn around until next year, said David Seiders, chief economist for the builders. "We expect housing to exert a drag on economic growth during the balance of 2007," Seiders said in a press release.
The decline was in line with expectations of economists surveyed by MarketWatch.
At 28, the index shows that fewer than one-third of builders think the housing market is good or fair. Builders are concerned about high levels of unsold homes, rising mortgage rates and the continuing "crisis" in the subprime mortgage segment, the industry trade group said.
After rebounding earlier in the year as favorable weather boosted sales and construction, the builders have grown increasingly pessimistic in recent months as lenders began rejecting more borrowers, and delinquencies and foreclosures mounted. The index has fallen 11 points from 39 in February to 28 in June.
The index was at 42 a year ago and peaked at 72 two years ago.
