Mortgages Blog

Finance Blogs » Mortgages Blog » Builders embrace reality

Builders embrace reality

By Holden Lewis ·
Tuesday, July 20, 2010
Posted: 9 am ET

A sign of sanity: Housing stats were down last month. Builders started constructing houses in June at a seasonally adjusted annual rate of 549,000 units. That's a 5 percent drop from the May figure, and a 5.8 percent drop from the previous June.

Keep in mind that the margins of error on those numbers are more than 10 percentage points.

Housing completions were way up, to a seasonally adjusted annual rate of 886,000 in June.

In terms of raw numbers (actual number of houses completed and started, instead of seasonally adjusted annual rates): Builders finished 79,000 houses in June, and started building 54,200 more. The housing bucket is emptying faster than it's being filled, which is a sign that builders are facing the reality that hardly anyone is buying a house nowadays.

How much house can you afford? Check out our affordability calculator.

Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.