High mortgage rates are currently impacting U.S. homebuilders, leading to more price cuts to attract buyers. However, there's a cautious optimism about potential future drops in interest rates. The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for November showed a decline of six points to 34, indicating a negative outlook (scores below 50 are negative). This decline was contrary to analysts' expectations of a steady figure from October. The main reasons for this pessimism are the increased interest rates since late August, which have priced out many potential buyers and raised financing costs for builders and land developers, worsening the housing supply issue in a market already low on resale inventory. This marks the fourth consecutive month of sentiment decline, reaching its lowest since the end of the previous year. Notably, most data for November was collected before the recent report showing a moderation in inflation. NAHB's chief economist, Robert Dietz, notes that recent macroeconomic data suggests improving conditions for home construction in the coming months. He highlights the movement of the 10-year Treasury rate back to around 4.5%, which could help lower mortgage rates to near or below 7.5%. This change, combined with the scarcity of existing home inventory, might lead to increased housing demand and potentially more positive views from builders in December. BOOMERS 'Silver Tsunami' Is About to Upend the Housing Market:https://youtube.com/live/3YELzoi1NYs Housing Market ROCKED By $1.78 BILLION Federal Verdict:https://youtube.com/live/vxvu_2Chhdw ➡️To Get A Personal Referral For A Realtor Visit https://www.kristinasmallhorn.com/need-a-referral For A Collaboration Video For Your Affordable Housing Option Or Comp. https://www.kristinasmallhorn.com/request-a-collaboration LIKE MY MUG Get It Here With Amazon Affiliate Link: https://amzn.to/46OZDhR ➡️Listen to this as a podcast; Apple: https://podcasts.apple.com/us/podcast/real-estate-for-everyone-with-kristina-smallhorn/id1662278826 Spotify: https://open.spotify.com/show/2QicyvJDqZKQKYKfjQSnKA Amazon Podcasts: https://music.amazon.com/podcasts/e15df209-2efa-4b3e-8f91-ecdf96c2620d/real-estate-for-everyone-with-kristina-smallhorn iheartradio: https://www.iheart.com/podcast/269-real-estate-for-everyone-w-106716514/
