High Mortgage Rates, a Good Thing for Builders?

Good afternoon everyone,

            Florida Realtors recently published an article I wanted to share with my subscribers. They explain how home builders do not hate higher mortgage rates, while most people typically do. After all, higher rates mean you are spending more on the home, so how could this be a good thing?

            In my last couple of articles, I explained how mortgage rates have affected the supply of homes on the market. The high mortgage rates are causing homeowners to refuse to sell their current homes because they know they will likely not get a rate near what they currently have. This has become good for home builders because buyers have looked to purchase new homes in response to so few used homes being on the market. Florida Realtors points out that buyers do not mind these mortgage rates and still want houses to buy. Most of these buyers are cash buyers or older adults who have paid off their mortgages and are looking for second homes in the South.

            This is why we have seen a continued increase in new home sales and could be why we have seen more builders continue construction despite the economic slowdown and Federal Reserve hiking rates. For more information on this topic or to see where I found this information, visit: Florida Realtors Article