WASHINGTON (AP) — The beating for homebuilders is continuing as rising interest rates and home prices keep potential buyers on the sidelines.
Mortgage buyer Freddie Mac said Thursday that the average rates on 30-year, fixed rate mortgages hit a 7-year high. Also Thursday, D.R. Horton said home deliveries in the first quarter will come in below what Wall Street was expecting. It’s citing skyrocketing home prices and mortgage rates.
The Texas homebuilder led all other major players downward, falling 6 percent in midday trading. Others fell around 2 percent to 4 percent.
The Federal Reserve has been raising short-term rates to cool U.S. economic expansion, and is expected to raise rates for a fourth time this year in December. More are anticipated.
Sales of new U.S. homes have now declined for four months.
To provide the best experience, we use technologies like cookies to store and access device information. Consenting to these technologies will allow us to process data such as browsing behavior on this site. Not consenting or withdrawing consent may adversely affect certain features and functions.
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.