Growing pessimism among builders. Today the National Association of Home Builders announced that in May its index of builders' perceptions of sales conditions dropped to its lowest since mid-1995.
To quote the press release:
Rising mortgage rates, deepening affordability issues and the retreat of investors/speculators from the marketplace ...
NAHB Chief Economist David Seiders calls it an "orderly cooling-down process."
Here's the history of the NAHB/Wells Fargo Housing Market Index since the start of last year:
2005 Jan 70
2006 Jan 57