January 8, 2008

Housing outlook takes a grim turn (AP)

A KB Home development still under construction is seen in Los Angeles Tuesday, Jan. 8, 2008.  KB Home, the nation's fifth-largest builder by volume, forecast another rough year for homebuilders, saying weak demand for new homes and falling profit margins will continue to plague the industry for the foreseeable future. Adding to the housing industry's woes is the potential for a slew of mortgage defaults in coming months. (AP Photo/Nick Ut)AP – Shares of Countrywide Financial Corp., the nation’s largest mortgage lender, sank to an all-time low Tuesday as a major homebuilder offered a grim outlook for the industry and the Bush administration signaled it is growing more concerned about rising mortgage defaults.

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