Homebuilders stay optimistic despite high mortgage rates
Real estate stocks, including Opendoor (OPEN), Redfin (RDFN), and Zillow (Z), were the worst-performing sector in the market following Donald Trump’s presidential election win. John Burns Research & Consulting director of research and managing principal, Rick Palacios Jr., tells Seana Smith that the sharp rise in mortgage rates — now at 7% — has been a concern for both homebuilders and homebuyers. Palacios Jr. emphasized that homebuilding clients are not planning their businesses based on election results. After conducting a survey of nearly 300 homebuilders, he found that the “homebuilders resale market would much rather prefer a steady, strong economy, even if it's at slightly elevated rates than super low rates.” To watch more expert insights and analysis on the latest market action, check out more Catalysts here. This post was written by Cindy Mizaku.
