The Orlando Sentinel reports on a conference in Florida. "Top housing-industry economists warned home builders meeting in Orlando on Wednesday that the industry will remain weak the rest of this year and next before possibly rebounding in 2008."

"Higher interest rates and declining affordability are taking a toll, said David Seiders, chief economist for the National Association of Home Builders."

"'I'm trimming everything in our forecast. The economy has slowed and will slow further. I've got it that way through next year,' Seiders said."

"Seiders said cancellations of new-home sales contracts are up sharply, builder confidence has plummeted, investor-owned homes are boosting inventory to record levels and home prices are starting to slip. 'Something is seriously going on here,' said Seiders, who repeated a previous warning that 'it's more than an orderly downturn.'"

"Seiders said he continues to be concerned that the Federal Reserve's interest-rate hikes are having an unintended consequence in that they drive up the so-called core inflation rate in a respect related to the ongoing downswing in housing."

"Rising interest rates..shift more consumers into the rental market, boosting apartment rates, and that gets factored into the federal government's Consumer Price Index, signaling more inflation, Seiders said. 'It turns out that Fed tightening is inflationary. How crazy is that,' he said."

The Boca Raton News. "Despite reports of declining home sales, Boca Raton realtor Marlene Piccolo does not feel terribly concerned. 'There's a lot of product out there, but prices are going down,' Piccolo said. 'I think buyers are just taking their time and being careful.'"

"Recent statistics indicate that June existing single-family home sales for the Boca Raton-West Palm Beach area totaled only 947-a 39 percent drop from the same month in 2005. In addition, condominium sales of 512 were 41 percent less than June of last year, when 872 were recorded."

"Some Realtors have attempted to sell listed homes by promising special incentives to prospective buyers. 'I know that realtors have offered things like plasma TVs to encourage sales,' Jack McCabe said. 'Of course, with the way prices are dropping, that probably won't be necessary.'"