Reply #37: Countrywide Fin'l CEO sees housing prices leveling (tipping point reached) [View All]

[UpInArms]

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-07T135431Z_01_N07730093_RTRIDST_0_FINANCIAL-COUNTRYWIDE-CEO.XML

KIAWAH ISLAND, S.C., Oct 7 (Reuters) - The chief executive of top U.S. mortgage lender Countrywide Financial Corp. (CFC.N: Quote, Profile, Research) said he expects housing prices to start easing, especially in markets where speculators have rushed in.

"I think we've hit the tipping point, and think that in many areas you're seeing a leveling off of prices," Countrywide CEO Angelo Mozilo told Reuters at this week's meeting of the Business Council, which includes chief executives of various companies.

Average U.S. home prices have risen more than 53 percent in five years. Low mortgage rates have kept demand robust and some economists are expecting 2005 to be a record year for sales and construction.

Mozilo said he thinks housing prices will especially moderate in areas where there has been speculative buying in condominiums such as South Florida.

"Wherever you see speculators, no matter where it is in the country, that's trouble, because as soon as there's a little blip, they're gone," Mozilo said.

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