As Global interest rates continue to tick higher, real estate has started to suffer. A major builder in the U.S. just reported a sharp uptick in deal cancellations. Is this signaling a major crash in the interest rate dependent market? This Business Insider article lays it out:
A growing number of would-be homebuyers are backing out of deals for newly constructed homes as they confront higher mortgage rates and an uncertain future for the housing market.
Now homebuilders are cutting back on the number of homes they’re building and offering up more incentives to keep sales moving.
D.R. Horton, the nation’s largest builder by production volume, is no exception.
Nearly a quarter of D.R. Horton’s contracts fell through in the three months ending in June, the company reported in its third-quarter earnings call Thursday. The cancellation rate of 24% was up about 7 percentage points from a year prior……. Read the rest in Business Insider