Single-family construction is getting worse due to rates

The unfortunate part is that we don’t need mortgage rates at 3%, 4% or 5% to gain some momentum: even rates around 6% could help initiate positive movement in the market. The main issue we’re facing is that Federal Reserve policy has a greater impact on the housing market than on any other sector. However, the Fed doesn’t shape its policies around the housing market — its focus is on labor and inflation. This is why we are currently struggling with the housing data.

Let’s take a look at all the builder data released this week.

Builder confidence is still near cycle low levels

This week, we received the National Association of Home Builders confidence data, which tends to focus on smaller homebuilders. Unfortunately, the results were not encouraging as we are…