Dwelling Disaster

With 30-year mortgage rates steadily climbing and now at 7%, it’s unsurprising the NAHB Housing Market Index fell to 38 in October, the 10th straight monthly decline, and outside of Covid, its worst level since 8/12. First-time mortgage applications are down 38.3% Y-o-Y and refi is down 85.9% Y-o-Y. Lastly, single-family starts are off 18.5% Y-o-Y, but less costly multifamily starts are up 17.6% Y-o-Y as builders focus on rentals.