Hovnanian Reports $80.5 Million Dollar Loss

The large national home building company Hovnanian reported a $80.5 million dollar loss for the third quarter of 2007. The president of the company, Ara K. Hovnanian, stated he expects the challenges in the housing market to persist throughout 2008. He attributes this decline to the tightening to the credit market reducing the number of qualified buyers, high inventory levels in many of the markets, and the psychology of the buyer being impacted by all the news & media coverage about the rate of foreclosures and mortgage availability. He also goes on to comment that the credit tightening of lenders has impacted the jumbo loan market since the beginning of the third quarter 2007.