Homebuilding sentiment has dropped below the key break-even measure of 50 for the first time in five months. Housing builders report challenges due to the persistent 7% mortgage rates in the current market.
Mortgage rates are the primary factor in homebuilding outlook as prospective buyers struggle to keep up with the monthly payments. The difficulty of getting a mortgage with these prices continues to be a huge problem in the current market due to the slowing of the housing market.
There has been some slight improvement in mortgage rate affordability, however there is still a widespread lack of access to credit. The lingering effects are pushing away potential homebuyers who are unable to keep up with the increasing prices of mortgages and other housing associated expenses.
Outlook:
• Persistent 7% mortgage rates causing difficulty for homebuilders.
• Prospective buyers are unable to keep up with monthly payments.
• Slowing of the housing market is causing buyers to stay away.
• Slight improvement in mortgage rates, yet spoke of difficulty with access to credit persists.
You can read this full article at: https://www.housingwire.com/articles/homebuilders-are-no-longer-feeling-good/(subscription required)
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