Interest Rates Are Crushing New Home Builders: New Housing Starts Fall

New housing starts fell to the lowest lever in 13 months. The higher cost of building materials and labor combined with rising interest rates are putting a damper on new home construction. New home construction will continue to slow as interest rates rise. This is not good news in a real estate market where there is a shortage of homes for sale.

Interest rates could rise even more in 2022 and 2023 and the housing market could continue to keep going up, despite claims of a housing bubble that could lead to a market crash. Real Estate prices are sensitive to interest rates, but there are also too few homes available and rising demand for homes plus wall street hedge funds buying are keeping home prices high.

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