Homebuilder warns real estate market is becoming victim to its 'No. 1 killer'

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Expensive mortgages are the 'No. 1 killer of the marketplace right now,' says the NAHB CEO, who signals home builders, buyers and sellers are 'pulling back.'

As a large, gray cloud looms over American real estate, the CEO of one of the largest trade associations is revealing what may make it pour on the market. "We had a better regulatory environment three or four years ago. We had this boom after COVID, people were looking to buy new homes and our industry was doing great," National Association of Home Builders CEO Jim Tobin said on "Varney & Co." Wednesday.

The housing market index, which is reported by the NAHB and Wells Fargo and asks respondents to rate market conditions, dropped to a rating of 43 in June, a two-point decrease from the previous month and the lowest marker since the start of 2024. Additionally, a recent report from Freddie Mac found that most homeowners who are locked into historically low mortgage rates are happy to remain in their current homes, except for millennials.

 

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