CADIZ TRADERS THREAD

Fannie sees 2006 housing pullback


WASHINGTON (MarketWatch) -- Mortgage finance company Fannie Mae predicted Tuesday that U.S. home sales are set to decline by as much as 10% in 2006 as higher interest rates and housing market jitters reverse a five-year run that helped fuel consumer spending and economic growth.

FNM46.71, -0.53, -1.1%) economists said their "best guess" is that sales will fall 8.4%, to 7.62 million units. That would be the first annual decline since 2000, when national sales dipped slightly, said David Seiders, chief economist of the National Association of Home Builders.

But even Fannie's predicted level for 2006 would be the third-strongest year on record for home sales