Reported 8 months ago
As housing starts and building permits data for May falls below expectations due to high mortgage rates, experts predict that a potential interest rate cut from the Federal Reserve could 'dramatically increase' the price of homes. The Pulte Capital CEO and the S&P Global Ratings Homebuilders Director discuss the impact on the housing market, noting that a rate cut could boost demand, potentially creating affordability issues and negative profitability for homebuilders due to elevated sales incentives. Zoning regulations are seen as a key factor to increase residential construction, with existing home supply limitations contributing to high home prices despite near-record levels.
Source: YAHOO