A Slow Housing Market Pulls Down Weyerhaeuser's Results
The housing recession took a toll on a number of sectors last year, including mortgage bankers and mortgage real estate investment trusts (REITs). Rising interest rates caused a collapse in mortgage-banking revenue and severely dented the balance sheets of the mortgage REITs. Another victim of the housing recession has been homebuilding, including the companies that supply the sector.
One of the biggest suppliers to the residential construction industry is timber REIT Weyerhaeuser (NYSE: WY). The lull in homebuilding negatively impacted earnings last year. Given the discouraging news, is this a stock to avoid?
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Source Fool.com
