Oh Oh.... More Economic Deterioration....

Posted 2007-04-27 11:41
by Karl Denninger

"WASHINGTON (MarketWatch) -- The vacancy rate for owner-occupied homes rose to a record 2.8% in the first quarter from 2.7% in the fourth quarter, the Commerce Department reported Friday. "

Just a few days ago I wrote in the ticker about the vacancy rate was at a record high in the 4th Quarter of 2006, and opined on what this likely meant going forward.

And now its even worse.

The vacancy rate for rentals also rose to a two-year record 10.1%.

The trend is not going in the "right way" for those who think that the US Housing Market is going to to turn around. Quite to the contrary - this just shows continued, and perhaps even accelerating, weakness.

And if you think this has escaped the bond rating guys, or that they think the worst is behind us, you'd be wrong. Here's what Moodys has to say:

"U.S. homebuilders are in jeopardy of violating their lending agreements in coming months because of a drop in sales, according to Moody's Investors Service. "

But remember, its all going to be ok...... uh huh.

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