Hovnanian Sees Q4 Net Loss, $300 Million Charge (Reuters.com, Nov 7): "Hovnanian Enterprises Inc. (HOV) reported a net loss in the fourth quarter due to land related charges, and sees 2006 earnings excluding these charges at the lower end of its previous outlook. The luxury home builder expects to incur $300 million in inventory impairment and land option deposit write-off charges."
U.S. Home Builders Say Housing Slowdown Continues (Washington Post, Nov. 7th) "Luxury homebuilder Toll Brothers Inc. said it expects to report a 10 percent drop in quarterly home-building revenue, and warned of continuing softness in formerly booming markets such as Northern California and parts of Florida... Toll Brothers said quarterly total contracts suffered from a higher-than-normal 585 cancellations, one-fourth of which came in the Orlando and Northern California markets. The company lowered its land position by around 6,500 lots, ending the quarter with around 74,000 lots owned or controlled, a decline of 19 percent."
Mortgates, Real Estate Lending And Foreclosures
U.S. Mortgage Rates Reverse, Rise In Latest Week (Reuters.com, Nov. 9th) "Average interest rates on U.S. 30-year mortgages rose to 6.33 percent from 6.31 percent in the latest week, and rates on 15-year mortgages also increased, to 6.04 percent from 6.02 percent, Freddie Mac said on Thursday. Mortgage rates had surged earlier in the week after the Labor Department reported the unemployment rate dropped in October. The jobless rate, at 4.4 percent, was the lowest since May 2001.
Macro Impact, and Will a Housing Crash Cause a Recession?
Faster U.S. Growth And Elevated Inflation To Keep Fed On Guard (Bloomberg, Nov. 10): "Economic growth in the U.S. will pick up and inflation will remain elevated through early next year, leaving the Federal Reserve little room to reduce interest rates, according to a survey of economists. The forecasts confirm the view of some Fed policy makers that the expansion may not slow fast enough to cool inflation. Low unemployment, rising incomes and cheaper energy will help consumers sustain the spending that makes up two-thirds of the economy, limiting the damage from the housing slump... Economists are predicting the pace of growth will pick up in the course of next year as the housing market starts to recover."
» Search RealEstate-Specific Tags: Home Sales - Housing Bubble - Real Estate Market
» SeekingAlpha
Comments