The homebuilders association has a report out. "Confidence among U.S. homebuilders dropped this month to the lowest in more than 11 years. The National Association of Home Builders index of builder confidence declined to 42, the lowest since April 1995, from 46 in May, the Washington-based association said today. A number below 50 means pessimists outnumber optimists. The index hasn't increased for the last eight months, the longest such stretch since 1994."

"Builders say traffic among prospective home buyers is falling, and a measure of sale expectations declined. Confidence fell in all four regions this month, with the biggest decrease occurring in the Northeast, which plunged to 40 from 47. The Midwest declined to 25 from 29, the South fell to 49 from 51 and the West declined one point to 61."

"The number of homes available for sale is 35 percent higher than it was a year ago, according to a Wachovia Securities report by analyst Carl Reichardt. The report said the housing slowdown is 'worse than we thought.' There were 565,000 new homes for sale at the end of April, a record."

"'These forecasts naturally are subject to a considerable degree of risk,' said NAHB Chief Economist David Seiders. 'The downside risks include the potential for large numbers of sales cancellations and re-sales by the investor/speculator group as well as more aggressive tightening of monetary policy than we’re assuming in our baseline forecast.'"

"'The June drop is further evidence that housing is slowing,' said (economist) Zoltan Pozsar. 'Policymakers need to keep in mind not to overtighten.'"

"The president of the Dallas Federal Reserve bank, Richard Fisher, said on Monday that while the pace of activity in U.S. housing markets was slowing he did not see a crisis developing. 'I don't see a crisis on the edge of the table ... I do see a subsiding of that (housing price) pressure,' Fisher said. 'The kind of 6 percent growth we had ... in the first quarter just wasn't sustainable.'"

"He said Fed policymakers were focused on fostering stable long-term growth and noted 'we're doing our level best to make sure that inflation doesn't raise its ugly head.'"