Homebuilders’ February Outlook Declines on Supply-Chain Delays
Homebuilder confidence declined in February, the second consecutive monthly drop, the National Association of Home Builders said.
February 17, 2022 2 MIN
Homebuilder confidence declined in February, the second consecutive monthly drop, the National Association of Home Builders said.
Existing home sales likely will total 6.41 million this year, the investment bank said in a note to clients, beating the projections of other housing forecasters.
A shortage of both new and existing homes on the market is keeping demand high among buyers, the report said.
Consumer confidence fell in February to a one-decade low as higher rates of inflation increased grocery store bills and energy costs for Americans.
The biggest gains were in the areas surrounding the Florida cities of Punta Gorda, with a price increase of 29% from a year ago, and Ocala, at 28%, the NAR report said.
Mortgage rates jumped to a two-year high this week as the economy showed signs of shaking off the Omicron surge.
The share of consumers who think it’s a good time to buy a home fell to a record low in January as rising mortgage rates and soaring property prices discouraged Americans.
The report sent bond yields, a benchmark for mortgage rates, soaring to highs not seen since November 2019, before the first Covid-19 infection was identified.
Some shoppers have put off purchases, some have canceled, and others have moved up their buying plans, Redfin said in a report.
The upward trajectory of mortgage rates stalled as economic data showed Omicron's impact on the U.S. economy.
