Down trend in markets...

US stocks declined due to housing slump. All the markets were on the pace to decline. Investors are worried about an economy that is slowing more than expected.

All the major housing company shares fell below the expectations and there may drop in the home prices. The earnings cuts by KB Home and Beazer were followed by a report from the National Association of Realtors today that said home prices may drop as buyers gain negotiating power.

It seems Fed may raise interest rates from the perspective of inflation and economic growth.