Is the home construction industry worried that the bubble is about to burst?
Builders, showing some restraint, trimmed spending on construction projects around the country in June, marking the fourth consecutive monthly cutback.
The latest snapshot of construction activity released by the Commerce Department on Monday showed that builders have been paring spending each month after the value of all construction projects surged to an all-time high of $1.13 trillion, on an annualized basis, in February.
Spending on all construction projects dipped by 0.3 percent in June from the previous month. Even with the decline, though, the value of all projects was still at a healthy level of $1.1 trillion, at a seasonally adjusted annualized rate.
The drop took analysts by surprise. Before the release of the report, they were predicting construction spending would rise by 0.5 percent.
Mr. Andrea Mitchell sees trouble ahead as well.
Greenspan has expressed concern about ”speculative fervor” in the booming housing market, which in some local market may have propelled house prices to ”unsustainable levels.” If prices were to drop or if interest rates were to suddenly shoot up, some home buyers and lenders could find themselves in a bad financial situation, the Fed chief has warned.