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One problem is that housing is supply constrained in many places. Homebuilders need loans too. So high rates increase homebuilders costs as well.
by ASinclair 3y ago
One problem is that housing is supply constrained in many places. Homebuilders need loans too. So high rates increase homebuilders costs as well.
- Temporary_31337 3y agoHomebuilders are hesitant to set up new projects as the new builds will be more expensive than the already elevated house prices- higher labour and materials costs higher interest payments for the home builders And finally More expensive mortgages for the end clients. This kills supply and it will send prices into the stratosphere.