Techdamentals
Oct 19, 9:12 PM
$KBH KB Home sells primarily to first-time buyers, the segment most exposed to the payment math behind this month's builder sentiment drop. On a
$300,000 loan, the move from 6.27% to 7.40% on a 30-year fixed adds about
$226 a month versus a year ago.
The NAHB builder index, which surveys builders on present sales, six-month expectations and buyer traffic, fell to 29 this month, its lowest reading since June 2012.
Forty-three percent of builders cut prices in response, the highest share since the NAHB began tracking it in 2020, with the average reduction holding at 6% for seven consecutive months.
Full explainer, plain English: https://www.youtube.com/watch?v=Pv7j50bAD_A
Educational, not advice.
https://techdamentals.com/newsletter/why-are-homebuilders-cutting-prices?ref=st
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