Some housing bubble news from Wall Street. "Homebuilder KB Home said negative trends in the U.S. housing market could persist in 2007, as inventory accumulates amid higher interest rates, according to a filing with the SEC. 'Conditions in many of the markets we serve across the U.S. have become more challenging in recent months,' the Los Angeles-based company said."

"'We expect the current negative trends in the U.S. housing market to continue for the remainder of 2006 and possibly into 2007,' the company said."

"The company added that several of its markets 'have been affected by a buildup of new and resale home inventories, higher interest rates and higher cancellation rates, particularly markets that have experienced rapid price appreciation or substantial investor activity, or both, in the past few years.'"

"For the quarter ended May 31, KB Home, the nation's No. 5 builder by 2005 deliveries, said net orders fell 19% from the year-ago period to 9,908 homes."

The Fort Worth Star Telegram. "The rush to build homes in North Texas continues at a full gallop. But with interest rates and the supply of available homes on the rise, builders may face a field crowded with inventory for the last half of the year."

"That could be a boon for buyers, as builders offer new incentives such as plasma-screen TVs and free upgrades."

"Nobody is talking about a free fall, just a slip from last year, when 47,000 homes were built in North Texas. Realtor Mary Manry said she has noticed homes taking longer to sell and more aggressive pricing in the past six months. 'It's taking a little longer to move them,' she said. 'If you are a Realtor, you are going in and pricing that property -- getting it closer to the nub.'"

"Foreclosures remain at historically high levels, as homeowners' budgets get squeezed by..rising interest rates that are boosting the payments on adjustable-rate mortgages. 'There is just not a reason that we see that it will go down,' said George Roddy, (who) tracks foreclosure activity."