Homebuilder Sentiment Grows
Homebuilder sentiment rose in March as new home sales rose for the 3rd straight month. Giving builders hope that the worst is now behind them as demand for new homes continue to be strong. Even with low supply, rising interest rates and fears of a recession continue. Home buying sentiment continues to grow as it jumped 2 points to 44 with anything above 50 considered positive according to the National Association of Home Builders/Wells Fargo Housing Market Index. The sentiment was at 79 this time last year when interest rates for a 30 yr mortgage were much lower.
Lennar reported better than expected eanings beating analysts expectations. Giving light that the market is starting to absorb the current interest rate market as the new normal. Growing families and pent up demand have help fuel the last few months of strong and continued demand. After a year of a slowing real estate, buyers and sellers have started to become accustomed to this new higher interest rate market. As the market stabilizes and buyer and sellers get accustomed to this new reality for real estate. The opportunity for new buyers to have more negotiation power for listings greater than 30 days. Interest rates cannot continue to rise forever as people become accustom to these higher interest rates of 6%-7%. The Fed has signaled that they may freeze and eventually begin to lower the Feds rate later in the year.
Read the entire article from Diana Olick from CNBC – Click on Link for Full Article
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