Why US Housing Is a Tale of Two Markets

The US housing market is divided into two segments: the resale market, which faces challenges due to affordability and low inventory, and the new home market, which benefits from these issues. Builders are leveraging financing strategies to offer lower rates, but the overall market remains stagnant with high interest rates. The future outlook suggests continued pressure on sales volumes, with builders potentially increasing incentives to maintain traffic.

What concerns do builders have regarding the sustainability of current sales incentives?

What impact have elevated mortgage rates had on consumer confidence in the housing market?