I'd posted about "HEADS UP!!" earlier......
Make no mistake -- Interest rates are extremely important to SALES.... Sales of ALL KINDS - not just houses -- but houses and cars lead the way.
The other night - I attended a party which was mostly all "the trades" - I was sitting with 3 excavator company owners all discussing their business (it's a very small valley where I live - they're all friends). #1 was about how busy they were last year and how busy this year seems to be starting out ---- and #2 ---- they all wanted to buy new equipment and hire more people.... PEOPLE to hire "don't exist"....and they're upset about interest rate change........ They've been buying with ZERO down and ZERO interest - and they've been finding out - those deals are going away.... Their unanimous response - they won't buy then! These machines are $80 and 100 and 250 grand!
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New home sales down 7.8% in January
22 Hours Ago | 01:40
Sales of newly built homes are falling, and the culprit is clear. Homebuyers increasingly can't afford what they want. Higher mortgage rates, combined with the loss of homeowner tax breaks in some of the nation's most expensive markets, are taking away buying power.
Sales fell in December, when the new tax law was signed, and then again in January, when mortgage rates moved higher. Sales are now at their lowest level since August of last year.
The government's measure of new home sales is based on signed contracts during the month, reflecting the people who are out shopping and signing deals with builders. It is therefore a strong read on current reactions to home affordability. Mortgage rates moved a full quarter of a percentage point higher during January, from below 4 percent to about 4.25 percent. It then took off further from there.
"It seems that the jump in mortgage rates in January had an immediate impact on contract signings," wrote Peter Boockvar, chief investment officer at Bleakley Advisory Group. "You can't get more interest rate sensitive when it comes to homes and cars with the associated cost to finance."
Last edited by GregWeld; 02-27-2018 at 06:31 AM.
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