Techdamentals
Oct 19, 9:14 PM
$LGIH LGI Homes targets first-time buyers almost exclusively, the group most exposed to the payment increase behind this month's weak builder sentiment reading. The 30-year fixed mortgage rate averaged 7.40% this month, up from 6.27% a year ago.
That difference adds about
$301 a month to the payment on a
$400,000 loan at an identical price, or roughly
$3,617 over a year, money that comes straight out of what a first-time household can qualify to borrow.
The NAHB builder sentiment index fell to 29 this month, its lowest since June 2012, with the buyer-traffic component at 18, the weakest outside of 2020 since April 2012.
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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