New Home Construction Slows to 10 year low

The construction of new homes and apartments has fallen to the lowest level since January 1997.  Anyone that has been following the real estate market new this would be coming.  Builders are in a world of hurt and are just looking to get rid of existing inventory before jumping into new construction.  The current mortgage industry in turmoil is also taking its toll on the market making it much more difficult for buyers to get approved for loans especially those with less than perfect credit.  The nations largest mortgage lender, Countrywide Financial Corp., will be cutting out most subprime, alt-A and jumbo loan products.  This is not going to help the glut of homes on the market.

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