Comments on: Weakening Builder Confidence Points to Economic Troubles Ahead https://eyeonhousing.org/2022/06/ongoing-decline-for-builder-confidence-signals-slowing-economic-growth/ National Association of Home Builders Discusses Economics and Housing Policy Thu, 16 Jun 2022 10:18:27 +0000 hourly 1 By: Cyd Vacio https://eyeonhousing.org/2022/06/ongoing-decline-for-builder-confidence-signals-slowing-economic-growth/#comment-1958085 Thu, 16 Jun 2022 10:18:27 +0000 https://eyeonhousing.org/?p=31954#comment-1958085 Homebuilders should also be in place to offer assistance in buying down the mortgage rate if buyers hadn’t already locked it in, or if they did, for if/when the lock expires, owing to the build cycle. Buyers won’t stay in place if their projected payment is moving up.

]]> By: John White https://eyeonhousing.org/2022/06/ongoing-decline-for-builder-confidence-signals-slowing-economic-growth/#comment-1957872 Wed, 15 Jun 2022 18:50:08 +0000 https://eyeonhousing.org/?p=31954#comment-1957872 I believe that right now builders should be focused like a laser on protecting their sales backlog. In many cases high sales volume and slowdowns in production due to supply chain problems have left many with larger than normal sales backlogs.

Every effort should be made to determine which sales within the backlog may be threatened by the rapid increases in mortgage rates that have occured and that will be forthcoming. If you have sales in your backlog that have not locked in their interest rate, you have potential problems. If you have sales in your backlog that have made application with lenders that do not offer an extended rate lock or cap program, you have a serious problems.

While losing any sale where you have expended great effort and marketing expense is bad, losing a sale after completing a home, expending marketing, administration and construction expenses and getting the home back in inventory with less than popular selections in a slowing market is much worse.

Spending time monitoring the sales backlog will help avoid the worst. Close cordination to ensure that those in your backlog have mortgage rate locks/caps and that deliveries are made within the buyers’ rate lock period is critical.

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