Comments on: Home Prices Discourage a Growing Segment of Prospective Buyers https://eyeonhousing.org/2022/02/home-prices-discourage-a-growing-segment-of-prospective-buyers/ National Association of Home Builders Discusses Economics and Housing Policy Tue, 01 Feb 2022 18:15:20 +0000 hourly 1 By: John P. White https://eyeonhousing.org/2022/02/home-prices-discourage-a-growing-segment-of-prospective-buyers/#comment-1893606 Tue, 01 Feb 2022 18:15:20 +0000 https://eyeonhousing.org/?p=31358#comment-1893606 While rising prices do impact affordability, I believe the threat of higher mortgage interest rates due to the out of control inflation bears increasing responsibility. As prices have moved to unparalleled highs, the typical buyer has become much more financially astute and many recognize that current buildout time for a new home potentially exposes them to higher mortgage interest rates.

Builders can do little about their costs but they certainly can do something about mirtgage interest rates. In the past astute builders have actually enjoyed greater sales volume and increased market share.

Builders who do not have experience in dealing with the challenges of selling and, more importantly, protecting their backlog in a high interest rate environment should seek out someone who does.

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