For the second month in a row, developers have slowed down the pace of building new homes.
The housing market is one of the most vibrant sectors in the US economy, providing jobs and investment savings to millions of americans, so any changes in the pace of new building are closely watched. "This is basically a temporary cooling in housing activity," says Anthony Chan, an economist at JPMorgan Asset Management in Columbus, Ohio. "I think it's premature to say we've turned the corner on housing." If the pace of housing is slowing, says Mr. Chan, "the latest [federal reserve] report should provide some comfort to policymakers - not because Greenspan wants housing to collapse, but because it may be showing that housing reacts to monetary policy."
Thanks to Zvi Leve
FULL STORY: Rapid pace of home-building slows down
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