NAHB: Speculators Leaving Home Market

The nation's homebuilders are reporting that purchase cancellation rates are up and that housing speculators are walking away from properties, according to the industry's leading trade group.At a forecast conference Thursday morning, National Association of Home Builders economist David Seiders told the audience: "I want speculators out of the business, and so do builders." He added, however, that the industry doesn't want speculators dumping properties back on the market. The NAHB is forecasting a slight decline in new-home sales this year and an 8% decline in existing units. "I'm starting to worry about rates," he said, noting that 30-year conventional fixed-rate mortgages could rise to 6.7% by year-end. Speaking at the same conference, J.P. Morgan Chase economist Jim Glassman said housing has shifted "from a seller's market to a buyer's market."