Homebuilders Tank After Homebuyer Tax Credit Is Halved

Not that the homebuyer tax credit was ever going to do much good, but it might’ve provided a mall modicum of relief to the roughed up homebuyers. Maybe. Well now it’s going to do even less. The homebuilders are tanking today after word emerged that in the compromise stimulus bill, the $15,000 credit has been reduced to $8,000.

Did politicians mysteriously wake up and realise that trying to manipulate the home market this way wasn’t going to do much good? Hard to believe, but maybe.

Centex (CTX), KB Homes (KBH) and Beazer (BZR) are all off about 10%.

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