Dabum:
You know, this ratcheting down of the rates is very worrisome. During the great boom of the 90s, we already had consumer debt and corporate debt at unbelievable levels, and mortgage defaults are now higher than at any time since 1982 (if I'm remembering correctly). The last time we had a huge liquidity infusion was for the Y2K debacle, which then led to our final runup in the markets and you know all the rest.
I never met a silly question I wouldn't ask. If we no longer have a 30 year bond, how will the markets set a fixed, 30 year rate? Since the longest dated government securities the Fed can buy from banks when it wishes the Fed funds rate to fall are now 10 year, what does that mean?
Well, it's all very mysterious to me, but many things are. For your reading pleasure, here's a little cold water on the home building industry.
Kb
M.D.C. Holdings Reports October Home Orders
DENVER, Nov. 2 /PRNewswire/ -- M.D.C. Holdings, Inc. (NYSE: MDC; PCX)
(www.RichmondAmerican.com) today announced that it received 462 home orders in
October 2001. The Company remains on pace to meet its objective of closing
over 8,000 homes and establishing new records for revenues and earnings in
2001. The last paragraph of this release describes factors that may impact
the Company's estimate of 2001 closings, revenues and earnings.
October
2001 2000
Orders for Homes, net
Colorado 176 195
California 96 135
Arizona 119 109
Nevada 38 52
Northern Virginia/Suburban Maryland 33 62
Total 462 553
MDC, whose subsidiaries build homes under the name "Richmond American
Homes," is one of the largest homebuilders in the United States. The
Company's wholly owned subsidiary HomeAmerican Mortgage Corporation provides
mortgage financing primarily for MDC's home buyers. MDC is a major regional
homebuilder with a significant presence in some of the country's best housing
markets. Richmond American Homes is the largest homebuilder in Colorado;
among the top five homebuilders in northern Virginia, Phoenix and Tucson; and
among the top ten homebuilders in suburban Maryland, Las Vegas, Southern
California and Northern California. |
