The news just kept getting worse today for home builders. First comments from the Federal Reserve’s Chairman Bernanke seemed to indicate that the Fed would not be holding the line on increasing interest rates. Interest rates seem likely to increase for the 17th straight time in response to continuing concern about inflation.
Then there was more bad news for a number of major builders. Lennar, KB Home, Pulte, and DR Horton were all downgraded today by Wachovia Securites. There are worries the high inventory levels will adversely effect earnings. All four builders closed lower in the market today.
