FAST FIVE: Homebuilder Sentiment Slips For First Time In 2019
For the first time in 2019, sentiment among US homebuilders dropped in June signaling that lower mortgage rates are failing to give the housing market a sustained boost amid property prices that remain out of reach for many buyers.
We note that Bloomberg reports homebuilders cited rising costs for development and construction, along with concern over trade issues and labor shortages, according to the report.
“Despite lower mortgage rates, home prices remain somewhat high relative to incomes, which is particularly challenging for entry-level buyers,” NAHB Chief Economist Robert Dietz said in a statement.
“Builders continue to grapple with excessive regulations, a shortage of lots and lack of skilled labor that are hurting affordability and depressing supply.” However, the picture was more mixed geographically, with the index declined in the Northeast and West while rising in the Midwest to the highest since October.
We're gonna need more rate-cuts (or negative-rate mortgages?).