Source: Yahoo Finance —
As the Federal Reserve continues its hawkish market reset – which has contributed to a rise in interest and mortgage rates – real estate experts are sounding the alarm that “big trouble” lies ahead for the U.S. market.
“When you have a rise and increase in interest rates like we’ve had, that is a big problem for housing. Interest rates are like the mother’s milk of housing,” Pulte Capital CEO Bill Pulte told FOX Business’ Maria Bartiromo Thursday. “And if you cut it off, you’re in big trouble. And when you’ve had these massive increases in interest rates, it just puts a lot of things to a stop.”
“It’s a tale of two cities. I hate to relate it to politics, but the more red states, places like Florida, Texas, the office buildings are pretty busy. Business is booming. There’s more demand and supply,” Thor Equities CEO Joe Sitt said later on “Varney & Co.” “It’s more, I hate to say it, markets like ours here in New York, Chicago, San Francisco is a ghost town. San Francisco’s been destroyed.”
One of the nation’s largest homebuilders, KB Home, released its Q4 reportWednesday which indicated more signs of housing weakness. According to the report, KB Home saw a 68% cancelation rate on new construction projects.
