Monday, October 8, 2007

U.S. Housing slump continues.

A combination of rising inventories of unsold homes, falling home prices, tightening lending standards, and inventory writedowns taken recently....have taken their toll on the U.S Homebuilding sector.

Tightness in the commercial paper market, and the upcoming resetting of Adjustable Rate Mortgages (ARMs) , appear to be compounding the housing slump.

Is the slowdown spreading to other sectors of the economy?

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