THE WEEK AHEAD.

Slowing Starts

Demand for new homes is drying up. This month, two major home builders reported disappointing sales. WCI Communities, based in Florida, said new-home orders fell 55.7 percent in the first quarter. And Pennsylvania-based Toll Brothers reduced its forecast for the number of new homes it would deliver this year. Chairman Robert Toll signaled one big reason: "Speculative buyers are no longer fueling demand; instead, they're putting the homes they've recently acquired back on the market." And even more new supply is hitting the market, Toll added, because of speculative projects. The bottom line: As demand is shrinking, housing supply is growing â€" a recipe for disaster. This week, the Commerce Department will report on housing starts in April. Normally, a drop in home-building activity would be viewed as worrisome. But with demand falling, Wall Street might actually welcome a dip in housing starts.

Inflation? Say What?

The jump in oil prices hasn't led to higher wholesale inflation â€" yet. Instead, the producer price index has fallen, from an annual rate of 5.7 percent in January to 3.5 percent in March. A drop this week may make inflation hawks smile. PRICES IN CHECK