Lower mortgage rates boost US home sales in February – Reuters
Lower mortgage rates boost US home sales in February Reuters
Lower mortgage rates boost US home sales in February Reuters
Housing starts rose in February as builder sentiment and buyer demand increase, but economic uncertainty still poses challenges.
Despite economic uncertainty, homebuilders remain optimistic in March, but six month outlook falters slightly.
The homebuilders got lucky in the current recession since they don’t have to compete with millions of existing homes.
Temperatures are slowly starting to rise in many parts of the country — and so is homebuilder sentiment, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) report.
Despite October’s nationwide uptick in new home sales, homebuilder confidence continues to slide, hitting its lowest level since June 2012 in November.
Builder confidence continued its downward spiral in November, and builders are now turning to mortgage buydowns to bring in buyers.
How are homebuilders positioned heading into spring? It’s all about mortgage rates as they move through a backlog of unfinished homes.
A slowing housing market led homebuilders to pull back, starting just 1.53 million housing units in 2022, down 3% from 2021.
Housing starts declined slightly in November, but economists are more troubled by the lack of building permits issued to homebuilders.