Builder Speculation: Supply of New Homes for Sale Surges to 7.4 Months
Mortgage Rates Rising as Speculative Building Increases
Completed Homes for Sale in 2018
- Supply of completed new homes has increased from 5.6 months to 7.4 months since January.
- Current supply is the highest rate since March of 2011.
- Builders are sitting on 74,000 completed homes built on speculation vs 63,000 in January.
- On January 4, the 30-year mortgage rate was 3.95%. On November 15 it was 4.94%.
- The Fed is committed to more rate hikes.
Please note that New Home Sales Dive 8.9% in October, Down 12.0% From Year Ago.
Meanwhile, Trump is committed to a trade war he cannot possibly win.
What can possibly go wrong with this picture?
Mike "Mish" Shedlock