Homebuilders are currently benefiting from elevated mortgage rates which give them the adaptability to offer lower rates to buyers, coupled with a wider range of choices.
According to the U.S. Census Bureau, new-home sales rose to a seasonally adjusted annual rate of 739,000 in July, marking a significant jump compared to previous months.
Logan Mohtashami noted that the clues foreshadowing the increase in new-home sales were visible in slightly positive growth in builder survey data and increasing purchase applications.
With the current 30-year fixed mortgage rate around 6.67%, and the Federal Reserve hinting at imminent interest rate cuts, the dynamics for homebuilders could shift soon.
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