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Builder Sentiment Rises Amid Rising Rates and Price Cuts

1/17/2025

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Summary

Story summary

Builder sentiment improved to 47 in January, signaling optimism for economic recovery amid material cost and inflation concerns.
Mortgage rates climbed from 6.1% to over 6.9%, causing increased cancellations and prompting 30% of builders to lower home prices by an average of 5%.
The NAHB/Wells Fargo Housing Market Index shows varied regional performance, with the Northeast at 60 and the West at 40.

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Story summary

Builder sentiment improved to 47 in January, signaling optimism for economic recovery amid material cost and inflation concerns.
Mortgage rates climbed from 6.1% to over 6.9%, causing increased cancellations and prompting 30% of builders to lower home prices by an average of 5%.
The NAHB/Wells Fargo Housing Market Index shows varied regional performance, with the Northeast at 60 and the West at 40.