US housing market The CEO of a private equity investment firm says it will be a tough year.
Goldman Sachs says four US cities will be hit by the 2008 house price crash.
“It’s going to be late in 2023. I think it’s going to be a tough fight. Next year, we’ll see the real damage that’s happening,” explained Pulte Capital CEO Bill Pulte. “Morning with Maria”
“Maria, orders are being cut by 40%, so we need to make sure these management teams are fully focused on getting things done now. And the big builders are stepping up their game now. I have to,” he continued.
Interest rates on 30-year fixed mortgages fell to 6.19% for the fourth consecutive week from last week’s 6.23%. A year ago, the average rate nearly halved to 3.54%.
Host Maria Bartiromo pointed to a 10% drop in mortgage application rates and asked whether Pulte thought the US housing market was currently suffering from a recession.
“It’s going to be hard to sow the seeds for the rest of the year, and I think you heard that on the earnings call. Frankly, even next year, Maria, these orders are down,” he said. emphasized. “For example, Pulte Group orders are down 40% year-over-year for her. So it makes sense, Maria. So you can call it a recession. You can call whatever you like, but seeing a 40% drop in orders is not normal. ”
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Citing November’s Case-Shiller 20 Cities Index, the host of FOX Business bolsters Pulte’s argument by citing that house prices fell 0.08% in November, marking the fifth consecutive month of declines. bottom. Bartiromo argued that the nature of the report was to “encourage” consumers to “enter the market,” but instead, many believed a “sticker shock” in mortgage rates. I am receiving
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“Yes. But Maria, one of them. You have to know this. So many of these builders are and VR were reported. For example, last night our third largest builder also reported a great report,” he explained.
Pulte went on to point out that many builders use cash to pay consumer interest.
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“Very effectively we showed the rates going to be 6% plus maybe 7%. ,” concluded Pulte. .