We Keep Hearing This Hissing Sound

If you don't believe the builders, you probably won't believe anyone. Bloomberg (06.19.06):

"Confidence among U.S. homebuilders dropped this month to the lowest in more than 11 years as higher mortgage rates caused sales to fall. The drop in confidence, along with sliding home sales and construction, bears out Federal Reserve predictions for a slowdown in economic growth after 16 consecutive interest-rate increases." Homebuilder Confidence in U.S. Drops to 11-Year Low

Not that big deal? Think again. Bloomberg (12.29.05):

"The housing industry accounts for only about 5 percent of the U.S. economy and yet generated half of the growth in [the] first six months [of 2005] and more than half of the private jobs added since 2001, Merrill Lynch & Co. said in an August report." U.S. Economy: Home Resales Fall to Lowest in 8 Months