Money | Default rate by subprime mortgage borrowers is the wild card in a strong economy
by Timothy Lamer
Posted 3/10/07, 12:00 am
The past few months have been bitterly cold for the U.S. housing market. The Commerce Department reported that new home construction fell 14.3 percent in January to the lowest level in almost a decade.
That report came on the heels of a survey from the National Association of Realtors that found sales of existing homes had fallen in 40 states during the fourth quarter of 2006. According to the NAR, the median price for existing homes was 2.7 percent lower at the end of last year than at the end of 2005.