Don’t expect the increase in mortgage rates to hit new home sales the same way as existing-home sales.
Investors will be watching earnings commentary at one of the nation’s largest home builders on Tuesday to gauge the impact of higher rates in the new year.
Weekly measures of mortgage rates have been on an upward climb in the second half of the year, passing 7% in August and broadly gaining since then. The gains weighed on sales of existing homes, which make up the bulk of all home purchase transactions, in September. It isn’t that builders, the previous beneficiaries of buyer demand in a supply-constrained housing market, are immune from the impact of rising mortgage rates. Industry confidence measured by the National Association of Home Builders fell in October to its lowest level since January.
UBS analysts John Lovallo, Spencer Kaufman, and Matthew Johnson lowered their 2024 builder estimates and price targets “to reflect the likelihood that ‘higher-for-longer’ interest rates will necessitate incremental rate buydowns and other incentives to sustain volume,” they wrote in a report last week. The analysts lowered their home building gross margin expectations by 1.4 percentage point on average.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Less home for more money: Home prices rise as Bay Area buyers swallow higher interest ratesEven with interest rates at their highest level in 23 years, undeterred buyers are scrambling over a limited number of prices on the market, pushing up prices.
Lire la suite »
Using No-Code SaaS Builders To Make Your New ProductNot knowing how to code shouldn't be a limitation to create an MVP for a SaaS. There are tools like Bubble, Carrd, and AppSheet that can make the process easier
Lire la suite »
Bond Builders: The Secret to Repairing Damaged Hair, According to ExpertsBond builders are a type of hair product that can help to repair and strengthen damaged hair. Learn what bond builders are, how they work, and whether they are right for you, according to experts.
Lire la suite »
His Call For Empathy Has Made This UCLA Jewish Studies Professor Feel IsolatedA professor of Jewish history at UCLA has tried to stake out some middle ground, where Jews and Palestinians on campus could safely stand and grieve for one another.
Lire la suite »
29 Low-Effort Tips To Help You Look *And* Feel More Put-TogetherPlease stop skipping breakfast.
Lire la suite »
30 Products To Help Your Apartment Feel BiggerBecause it doesn't have to feel like you're living in a shoebox.
Lire la suite »