Florida Virtual Houses

If the home builders are neural, what does that mean for the rest of us?

November 21st, 2008

The builders are approximately as pessimistic as they’ve ever so been. Yesterday, we got word that the Home Association of Home Builders/Wells Fargo Housing Market Index, which tracks builder sentiment, fell to a record low of 9 in November (sinking from an already low-toned 14 in October).

Today we observed out that puting up starts decreased 4.5% in October and even more concerning, single-family home building tolerates plumped 14.5%, meaning that we’ll get wind an even more important drop in domiciliating starts in deriving months.

Patrick Newport, U.S. Economist with IHS Planetary Insight, appeared downright cared when I spoke with him today. He bade the housing start report, a “shocker.”

“These are people who cognize their business,” Newport said of the builders. “They’re in best touch with the market than we are and the press is.”

The fiscal crisis, which truly let doging Lehman Brothers collapsed on Sept. 15, will belike have good damage to the already wavering housing market. It appears that mortgage applications are right smart down since September, an indication of coming down buyer demand.

U.S. home mortgage applications struck down last week by a seasonally corrected 6.2% compared to the former week, according to the Mortgage Bankers Association. And the application volume was down 41.3% compared to the same week in 2007.

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