Home Builders Are NOT HAPPY As Mortgage Rates Dip

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.
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Kristina Smallhorn
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Disclaimer:

[momof]

HOAs I never want to buy anything in an HOA completely criminal!!!

[ginacardarella]

When is everybody gonna stop listening to the regular news? They lie about so much stuff.

[lynnw]

No one had deals. No lines, no deals, and no spare money. We are doing $50 per person budget. Keep it simple. Don’t support corporation greed.

[thiskiddyahoo]

Love Javier! So funny, so realistic about Real Estate buying! Thank You Kristina, Eddie, Javier, and Moderators!

[deborahdeist]

I am never on the street on black Friday. Or the rest of the weekend. I now give cash that is something everyone lives😊.And I am waiting for a new government to buy again ..

[HEllis-qunn]

I had a very conservative Thanksgiving and Black Friday weekend. Spent money but nothing big. Kept things within a budgetthat allowed for a few extras but nothing extravagant and it actually worked out very nicely. I have actually been finding ways to live on less.

[ginacardarella]

I think if you're a senior you shouldn't have to pay property tax if you've owned your home for over 25 years you paid your dues in taxes especially

[drmelloyello]

Y’all are my two favorite YouTube realtor channels. Keep it up 💪

[johnmackey]

HOA in Florida arrested for essentially stealing from residents hundreds of thousands if not more. I think there are state that say no one can be on a HOA board for more than a specific amount of time consecutively, too many people getting too comfortable. In my building a landlord wasn't paying maintenance and had to sell when management company used lawyers, unit sold, he still had to pay at closing, has multiple properties in complex, he knew he was responsible. HOA is more cautious about non-residents buying. It is now in condo docs you have to own for two years before renting to be sure owner is serious.

[Kholoured]

At min 38 you talk about the silver tsunami. I have my mother age 70 and my 2 older half susters 55+ all 3 with the current market are planning to retire in place. They may have wanted to sell 5 yrs ago for a smaller home but now they know they can't get better interest rates/prices. They are all staying put. Unless the market changes they are now going to stay put and NOT sell. In fact me and my 70 yr old mother are planning for me to move in when i finish my nursing degree in 9 months. The help shoulder the load AND temodel the home to suite us. We plan to stay put no morgage, home is payed off, 1 acre yard, major metro area, guarenteed work in the city, easy access to hospitals, grocery stores, ect. Just makes the best financial sense

[alphaomega]

Rates should remain high with the goal of bringing down real-estate prices.

Why raise them to begin with if only for a short period of time.

People need to focus on someday actually outright owning the asset rather than lower monthy payments spanning 30 to who knows 40 or 50 years.

😶

[petespike]

Interest rate wont save people, demand is still high and home prices are relatively holding. Cost of repayments, vs land tax vs cost of living, is all having effects on borrowing. Banks are lending to less people.

[carmyopteryx]

We purchased our first home a few months ago, right before they hiked the rates again. We got 10k in closing costs from the seller, plus around 7k back from our realtor and broker. We are using that $ to fix up this house (it was the best we could afford but its dated and needs work).

I haven't seen home prices change at all in my area, if anything they've gone up, plus the interest going up. We had to get out of our rental (nightmare neighbors) and rental prices were close to what this mortgage would be so here we are.

[patriciamoore]

Black Friday Kristina. So true. Most f us don’t need to buy one more thing that goes in people’s garages.
I have downsized so much. There’s nothing I need and or want.
Saving money for investing and not buying a home anytime soon . Yet I love real estate and
listening to you.

[MindYourBusiness]

I surely haven’t bought anything from these stores and don’t plan on buying much.

[danshealthylifestyle]

If you’re from Massachusetts and you’re a first time homebuyer. Look into Maine their prices have dropped significantly.

[Kholoured]

Min 44. Javier. I only listen to Ms kristina and mr javier on real estate. They keep it real and dont get too obtomisitc or too doom and gloom. Love!!

[kfk]

What do you think about the effect of this current environment for custom homes?

Is it cheaper or more expensive for custom builds?

[billthebuilder]

I am starting two spec houses in Doraville, GA. (metro Atlanta) $899, 900. and have one finished inventory house in Columbus GA. $640, 000. When it sells I will start 2 more in the high $700's in Columbus.

[cesilia]

Can you go over refinancing, or have someone discuss how someone refinances?