“Despite challenging affordability conditions, home builder confidence edged higher in October as they anticipate that mortgage rates will gradually, in an uneven manner, moderate in the coming months,” said Carl Harris, chairman of the National Association of Home Builders (NAHB).
Builders appear optimistic about potential demand, especially as the need for more housing persists.
“There is a significant need for additional housing supply, as many prospective home buyers are entering the market,” Harris added.
However, mortgage rates ticked up again in October, leading Jing Fu, NAHB’s director of forecasting, to predict a possible slowdown in new home sales in the coming months.
“Following the Fed’s actions in September, mortgage rates fell to 6.18%, from 6.5% in August,” Fu noted. “However, new home sales will likely weaken in October due to a recent rise in long-term rates.”
Source: mpamag.com