US Housing Market Resilience: New Home Sales Accelerate Despite Rising Rates
Portfolio Pulse from Benzinga Neuro
The US housing market saw a significant surge in new home sales in September, despite rising mortgage rates. New single-family home purchases rose by 12.3% to an annualized pace of 759,000, surpassing all predictions. Homebuilders like PulteGroup Inc. have been adjusting their product, pricing, and incentive programs to address affordability concerns. However, the sustainability of this sales pace remains uncertain due to high borrowing costs.
October 26, 2023 | 9:05 am
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PulteGroup Inc. has been adjusting its product, pricing, and incentive programs to address affordability concerns amidst rising mortgage rates. This could potentially attract more buyers, positively impacting the company's sales.
The surge in new home sales despite rising mortgage rates indicates a strong demand for homes. PulteGroup's strategy to adjust its product, pricing, and incentive programs to address affordability concerns could potentially attract more buyers, leading to increased sales. However, the high borrowing costs could pose a risk to the sustainability of this sales pace.
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