Now what happens to the market depends on the interest rate structure. Long rates have been better than expected, but I think we can see them rising, moving into alignment with what's going on with the economy and with short-term rates.

230

We see a flattening of housing starts and the beginning of a cooling process.

167

The housing market is seeking out a peak. While it is still too early to conclude that it has found one, there is growing evidence that the Fed has started to hit its mark and housing will begin losing some of its exuberance in the period ahead.

162

All the fundamentals remain in place, and the overall housing market continues to exhibit ongoing strength. Favorable mortgage rates, as well as strong household income and job growth, continue to bolster housing demand.

150

This is obviously exuberant behavior by builders.

120

It's really unprecedented, so you wonder if it can continue.

118

There's other housing numbers showing some declines in April as well. My own survey of builders has shown them losing some momentum for the last couple of months, including May. I think there's some evidence accumulating that this supposedly highly interest-sensitive part of the economy is starting to give ground.

109

It's when people view these changes as enduring that it really can affect their current spending behavior. I think that is happening probably, and I'm hoping that house price appreciation, the equity accumulation, will help soften the blow in consumer spending.

100

Winter weather really takes the sting out of these declines.

90