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The mortgage interest rates rise and the US homebuilders are gloomier, lenders as well tight up their standards. Since the index had hit to 25, the lowest cycle in February, 1991.
The National Association of Home Builders or Wells Fargo Housing Index had fall to two points to 28 in June. As expected the forecasters repeated the May’s index at 30.
The builders can see that the condition is not good if any number is below 50. As told by the NAHB chief economist David Seiders there is a clear crisis in the sectors that prompted the tighter lending standards in the mortgage market.
The interest rates in the prime quality home mortgage had increased considerably the past month along the Treasury rates. The three index components in June was down, the current sales, 6 month expectation and the prospective buyer traffic.
There was a decline in the 3 out of 4 regions; with the only improving is the Northeast. There was a decrease in 19 points for the overall HMI; the economists see a little prospect for quick recovery.
Noted by the Sal Guatieri this morning, the increase in the fixed mortgage at ¾ percentage point in the previous months signaling the death knell for housing surely will not help.
As expected there will be weakness showing up this May as the housing will begin, the forecasters said, this comes out Tuesday morning in the Commerce Department.
23:13
Posted on Jun-20-2007
