US housing construction is dead with current mortgage rates
By: Logan Mohtashami | Published: 2025-06-25 19:06:00 | Source: www.housingwire.com
New home sales missed sales estimates significantly in Wednesday’s report and we have negative revisions to the previous months. The builders’ profit margins are dwindling, which means housing construction, which has been at early COVID-19 recession levels for some time, could worsen if mortgage rates stay elevated or head even higher.
So, instead of focusing on the new home sales report directly, I want to show you why housing permits and housing starts are at recessionary levels even though new home sales have stayed within a range for many years now.
Builders’ confidence is in the dumps
The homebuilders’ confidence data, which primarily reflects the views of smaller builders, is currently close to the lowest levels seen during the COVID-19 recession. Late last…
