As mortgage rates move higher, Fed officials mull a cut

The higher-for-longer rate environment appears to be taking a toll on the market for new homes, which had been outperforming the existing-home market for some time.

Following last week’s release of the homebuilder confidence survey from the National Association of Home Builders (NAHB), Cotality chief economist Selma Hepp said that the rising inventory of existing homes for sale is likely to keep new construction activity in check.

“In response to a lackluster spring home-buying season and subdued demand projections, builders are adjusting their new construction plans accordingly,” Hepp said in written commentary. “Additionally, increasing inventories of existing homes for sale in several major new construction markets may further reduce the need for additional housing…