I am guest blogging for Grim this week while he’s out of town. The housing starts number is out!
The total sales for for new homes is at a 1 year low, while inventory is at a record high..
Higher mortgage rates and home prices will push down sales and may contribute to a slowing of the economy in the second half, economists said. Home construction may not add to economic growth this year for the first time in more than a decade, leaving homebuilders less optimistic.
With this being said, and the Economy seen rebounding strongly in 2006 I find it hard to believe that the “low interest” rates will continue to be a driver for the industry.
And finally, to quote the end of the article:
Housing affordability fell to the lowest level in more than 14 years last quarter and may decline further in 2006 as mortgage rates and prices continue to rise, according to the Realtors.