The Bond Market Likes Bad News
The National Association of Home Builders released there sentiment index today and the bond market rallied slightly on the weak index results. The index came in at 50, which was considerably lower than what the street was looking for, which was 55. Bond traders like it when there are strong signals that the housing bubble is bursting because it implies that the fed will stop raising interest rates sooner, rather than later.
“U.S. home builder sentiment declined in April to its lowest level since November 2001, the National Association of Home Builders reported on Monday.
The drop was in response to rising mortgage rates, continued affordability issues and subsiding demand from investors and speculators, the NAHB said.
The NAHB/Wells Fargo Housing Market index slid to 50 in April, seasonally adjusted, from March's downwardly revised 54. It was the lowest reading since November 2001, when it stood at 48.”
“U.S. home builder sentiment declined in April to its lowest level since November 2001, the National Association of Home Builders reported on Monday.
The drop was in response to rising mortgage rates, continued affordability issues and subsiding demand from investors and speculators, the NAHB said.
The NAHB/Wells Fargo Housing Market index slid to 50 in April, seasonally adjusted, from March's downwardly revised 54. It was the lowest reading since November 2001, when it stood at 48.”
posted by Little_Silvered at 6:39 PM
3 Comments:
yes, things are slowing down considerably it seems but, i really don't see the shit hitting the fan until bush leaves office. i'm one of those people who could have bought at the shore years ago and didn't (who buys a house in there early 20's?) but anyway, i almost did. so yes, i'm bitter. but, i think what we all want is for the shore to be a mellow place again. a place where you could have fun. not a place where everyone talks about real estate and what that or this house sold for. the difference betweeen stock market booms and real estate booms is that real estate really affects the remaining middle class and working poor by pushing us out and away. can't wait till the boom is over.
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There is a huge article in the latest issue of Harper's about the bubble and its dire consequences called "The New Road to Serfdom: An illustrated guide to the coming real estate collapse". A must read, you'll definitely get some great quotes from it.
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