Business: Housing Shuffle

Years of low home construction lead to shortages

The bellwether housing industry is once again poised for a painful plunge. As the nation's economy grew by a modest 1% between July and September, home building enjoyed a mild rebound from a steep drop it suffered last spring. But the new run-up in mortgage rates, which has pushed the cost of money to 14.5% in California and New York City, has left millions of home buyers anxiously waiting once again for the cost of money or the price of houses to come down. Says Merrill Butler,...

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