The report reflects the uneasy state of new construction, with builders facing the strain of high mortgage rates and increased costs for building materials.
“To keep buyers interested, many builders have been offering upgrades or buying down mortgage rates, but rising home prices coupled with mortgage rates approaching 8% means there will be fewer buyers in the market to entice,” Bright MLS Chief Economist Lisa Sturtevant said.
It is the week’s second report on the state of the new housing market.
On Tuesday, the National Association of Home Builders/Wells Fargo Housing Market Index revealed that builder confidence fell for the third consecutive month in October.
"Today’s September housing starts report reflects the fragility of the real estate market,” said Travis Hodges, managing director at insurance broker VIU by HUB.
Persons:
“, ”, Lisa Sturtevant, Alicia Huey, Travis Hodges
Organizations:
Census Bureau, Department of Housing, Urban Development, MLS, National Association of Home Builders, National Association of Realtors
Locations:
Wells Fargo, Birmingham , Alabama, Florida, California