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
Feb 69
Mar 70
Apr 67
May 70
Jun 72
Jul 70
Aug 67
Sep 65
Oct 68
Nov 61
Dec 57
2006 Jan 57
Feb 56
Mar 54
Apr 51
May 45

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