Coastal Markets May Gradually Cool

Home-builder companies operate in 25 states, but half of their revenue is from California, Florida and Texas. While the demand for housing continues in California, long-term interest rate increases could lead to a leveling-off of prices in this and other markets resulting in a "decleration" in building production. The debate over the housing bubble and its demise has raged for some time, but Standard & Poor's has joined the circle of moderates on predictions of stabilization rather than crashes.