Industry News

Subprime fallout hurts home builders

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The housing market continues to deteriorate, and subprime-related tightening in the mortgage market is among the contributors, the National Association of Home Builders announced in a forecast report Tuesday. "Most housing indicators show ongoing deterioration of market conditions through all or most of the second quarter, and it's clear that the subprime-related tightening of mortgage market conditions has provoked an extra down leg to the housing downswing that began in the second half of 2005," stated David Seiders, the association's chief economist. "Most indicators point toward further deterioration." Seiders' latest forecast called for a 23 percent decline in single-family housing starts this year compared to 2006, followed by a 2 percent growth in housing starts in 2008. Seiders expects a 16 percent drop in multifamily starts this year and a 2 percent decline in 2008. Single-family starts are expected to drop 4 percent in the second half of this year compared to the ...