New home contruction fell over 15.5% from November to December to an annual pace of 550,000 units.  This is the lowest since the Commerce Department started compiling this data in 1959.  I don’t think that this comes as a surprise as the market absorption rates have skyrocketed, the home builders have done the only sane thing.  Stop building until the inventory is lower.

I heard a report that home builder Toll Brothers if offering mortgage financing of 3.99% when you purchase one of their homes.  This is equivalent of GM offering 0% financing on their cars.  However you get a home with a 10-year new home warantee backed by the state of NJ instead of a car that you might not be able to get parts for in 3 years if GM goes out of business.