Timing the Rally in Homebuilding Stocks

Standard & Poor's thinks builders' asset writedowns may have peaked

From the Federal Reserve to the average investor, the unraveling of the U.S. housing market has the country transfixed. Shares in the largest U.S. homebuilders have been pummeled this year, as demand for new homes slumps and access to credit dries up in the wake of the subprime mortgage situation. The downturn has forced homebuilders to report huge operating losses in the second and third quarters.

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