Homebuilders Get a Reality Check

Can you believe those horrendous new-home sales? So much for builder confidence. I know I was fed up with builder after builder telling you that despite rate increases, the industry was going great guns. I don't want to single out any one builder, but you knew they were cajoling you and hyping themselves, because a quick, disorderly rate rout is the kiss of death if you are trying to sell new homes. The process is hard enough. Now it is just on hold.

Let me just say, sure, it can come back. There is certainly more "pent-up" demand than for 394,000 new homes after what this nation has been put through. A 13.4% decline to a level not seen since October will, I believe, become the new norm unless rates come back down or at least steady themselves. This is the kind of report that makes a Fed tapering seem downright stupid -- hence the move in bonds and the dollar....192 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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