Real Estate News for Wednesday, October 19th, 2005

A tax reform proposal agreed upon Tuesday by President Bush's advisory panel would eliminate the federal deduction for state and local taxes and sharply limit the tax break for home mortgage interest. That's leading some Democrats in California and New York to assail it as an attack on the blue states -- the ones that voted Democratic in the 2004 presidential election -- which tend to have higher taxes and housing costs. Click here to read more.

Home-building stocks have been less than stellar for months, as soft consumer confidence and rising mortgage rates have made investors wonder if the hot real estate market soon could go bust. The concern: Rising interest rates will finally crimp demand for real estate and put a clamp on interest-only and other so-called voodoo loans that have been fuel for the raging real estate market. Last week, the average rate on a 30-year mortgage rose a fifth-consecutive week, hitting 6% for the first time since March. While it's unclear if or how much that is going to hurt actual home prices, the effect on home builders' stocks is undeniable. The group, which had been one of the best performers on Wall Street earlier this year, is quickly beginning to look like one of the worst. To read more click here.
Here are a few home-building stocks:


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