Housing Looks Headed for Turbulence

There's been a lot of talk about the housing industry and housing stocks, not just the publicly traded homebuilders such as Toll Brothers (TOL), PulteGroup (PHM) and Ryland Group (RYL) but also key suppliers, such as the wallboard supplier USG (USG) and the flooring products company Armstrong World (AWI). Shares of those companies and of others that serve the homebuilding industry have pulled back amid the talk of a Federal Reserve tapering and the rise in mortgage rates. 

Even though mortgage rates have climbed, they remain well below historical levels. When I bought my first house, my mortgage rate was around 8% -- that's substantially higher than the 4.6% of today. Granted, we may see a tick down in mortgage rates if the Fed doesn't taper in September, but let's face it, at some point interest rates will need to rise. ...483 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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