It is a time of incredulous, all-out panic. A positive investment climate for the homebuilders existed for almost 9 years, and suddenly it seems to have vanished overnight.
Once upon a time, 3 weeks ago, housing starts were up. They had steadily recovered from some of the lowest levels ever recorded during the Great Recession. Mortgage originations were the highest in history. Mortgage interest rates were hitting new all-time lows. Demand for new homes was pouring in, creating a steady escalation of completions. Homebuilder sentiment was high also (see below). And for good reason