Homebuilder Sentiment Plummets as Rising Mortgage Rates Dampen Demand
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Minneapolis Fed survey shows residential and commercial developers are pessimistic about future conditions due to declining demand and rising costs.
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Industrial and infrastructure builders are more optimistic as labor and supply chain issues ease.
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67% of residential builders say project backlogs are shrinking; 60% getting fewer requests.
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Mortgage rates peaking near 7% in mid-2022 was a tipping point for homebuilder sentiment.
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Permits for new residential construction down 36% January-November 2022 compared to 2021.