"The housing market is seeking out a peak," stated Seiders, but it may not quite have reached it yet. In spite of Hurricane Katrina, housing starts for September went up 3.4 percent. Permit issuance was up as well.
The Fed has been doing its best to slow down the fired-up housing market, Seiders noted. However, "It isn't that easy for the central bank anymore." Federal Reserve Chairman Alan Greenspan has felt the housing boom is unsustainable and he doesn't like the "exotic" financing and speculative buying that have been pushing it along.