J.P, Morgan AM: US home building is under pressure

J.P, Morgan AM: US home building is under pressure

October 24, 2022

Real Estate United States
Vastgoedprijzen-hypotheken-980x600.jpg

The National Association of Home Builders' (NAHB' s) housing market index fell sharply in October, with sentiment dropping further as higher mortgage rates weigh on home sales and material costs remain elevated.

The index now sits at half of its level six months ago. Housing starts are already declining, with home building down 8.1% year- on- year in September; this latest NAHB survey suggests the number of new houses built is likely to slow further in the coming months. However, with the vast majority of US borrowers now on long term fixed rate mortgages and far less subprime mortgage lending, a slowdown in US housing activity should not be accompanied by the number of forced sales and resulting financial crisis that was seen in 2008.

24102022 J.P. Morgan AM

Related posts