Housing is Still Facing Headwinds

by Marilou Long on June 22, 2010

in Debt,Economic Indicators,Residential Real Estate

, and housing starts fell last month by 10%. These numbers are confimed in the price action of various housing related stocks, both homebuilders and home improvement stocks. Home Depot and Lowe”s are well off their recent highs, and the homebuilders are down from their 52 week highs from -27% to -48%.  It is difficult to quantify the effect of the various government interventions in the housing market in these numbers.  The $8000 new buyer credit expired at the end of April, and while foreclosures are accelerating, there is still large backlog of problem loans in the banking system.

Many retail related stocks have also rolled over, and we will be watching these sectors carefully for a read on the domestic consumer.  Meredith Whitney, the well known banking analyst, thinks that consumers have been spending mortgage payments rather than sending them in to their lender.

Update 6/23/10 –

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