disappointment new home sales on 03 36

Today the next home sales, 848k, was annouced to be below estimate, 985k, and even previous month's next home sales was revised downward. The new home sales has been dropping for months. The credit crunch might be driving down home sales. But the report of next home sales be in conflicts with last week's existing home sales. The conflicting reports might reflect weather distortion. Also reports may reflect shifting buying habits: facing slower price appreciation, more buyers prefer existing homes than next homes. The disappointing housing market may translate into low house price, lower consuming power, more personal bankruptcies. In addition, deterioating housing market might translate into lower needs for loans, impacting personal banking business. Today, S&P forecast the fallout of subprime mortage may impact bonds backed by automobiles loans as people with pooer credit struggle with household debt. Fortunately, majority of subprime auto borrowers are renters, and they are not subject to the vagaries of mortgage market.