In another sign that homebuilders are pulling back, spending on residential construction fell 1.9% in October to $597.1 billion -- marking the seventh consecutive monthly decline, according to the Census Bureau.Construction spending is off 9.4% since October 2005, and builders are dealing with a 558,000 inventory of unsold homes, which represents a seven-month supply. In addition, the inventory of existing homes rose to 3.8 million in October, which is a 7.4-month supply at the current sales pace. The National Association of Home Builders has voiced concern that the large inventory of homes will make it harder for builders to sell their inventory. These concerns are heightened by a 30% jump in the number of vacant homes on the market over the four quarters ended Sept. 30. The number of vacant homes for sale totaled 1.9 million in the third quarter. "Normally, one third of existing homes are vacant, but now it is closer to half," said NAHB economist Michael Carliner. He said he suspects that a lot of these vacant homes were rentals or second homes that owners now want to sell to pocket gains or cut their losses.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
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Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
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While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
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The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
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Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
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The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
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