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According a news report last Monday, worrying about the supreme loans and the rise in the mortgage rates, Home Builders, are now to lose confidence, dropping to the lowest level in 16 years.
The index, National Association of Home Builders, for a single family home had fallen down in June to 28 from May 30. The reading in 28 has mark the lowest point index since 1991 of February.
According to the chief economist of NAHB, David Seiders, it is clear the crisis had prompted tight in the subprime sector loan standards in the mortgage market, the interest rates in the prime quality home mortgage had considerably rise as the past months with the long term in Treasury rates.
He predicted that sales in the housing will erode this month and the improvements in the housing will start until early next year. Thus resulting the housing will drag the economic growth in the balance of 2007.
The expectations in sales for the next 6 months will drop in June to 39 from 41 in May, as told by NAHB. The traffic for prospective buyers decreased to 21 from 22. The June’s index was surveyed in 409 home builders, those who answered the questions about sales prospect.
The index in the Housing Market surpass 50 meaning the builders see it a good sales. The numbers used in the compilation of the index adjusted in variations.
22:22
Posted on Jun-19-2007
