Rapidly rising mortgage rates are hurting the nation’s homebuilders as the costly new construction becomes less affordable.
- Builder confidence in the market for new single-family homes dropped 2 points to 77 in April. Any reading above 50 is identified as positive sentiment.
- Of the index’s three components, current sales conditions dropped 2 points to 85. Buyer traffic fell 6 points to 60, and sales expectations in the next six months rose 3 points to 73 after a 10-point drop in March.
- Jerry Konter, Chairman of NAHB, stated that despite low existing inventory, builders posted sales traffic and current sales condition fell to their lowest level since last summer.
The average rate on the 30-year fixed mortgage rose to nearly 3.90% at the start of March and is up to 5.15%, the highest rate in more than ten years.
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