The notable discrepancy in the market arises from builders' reliance on various strategies to manage their pipelines, impacting both sales and construction levels differently.
When mortgage rates rose to 7.50%, housing starts and permits dropped, and builder confidence plummeted, reflecting the critical connection between financing costs and construction activity.
Current data indicates that even as new home sales rise, the uncertainty caused by mortgage rates has led to concerns among builders about completed units for sale.
The key takeaway from recent reports is that despite a rise in new home sales, the overall health of housing starts remains fragile and influenced by external financial factors.
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