Pulte Capital CEO Bill Pulte discusses in “Mornings with Maria” the housing and construction market as US 30-year fixed mortgage rates fell 6.1% for the fourth week in a row.
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“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.
According to Bill Pulte, the housing market will be depressed in 2023. (AFP/Getty Images via Stephanie Reynolds/Getty Images)
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
“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.
During an appearance on Wednesday’s “Mornings with Maria”, Bill Pulte argued that big US builders need to “up their game” to ease the fragile real estate market. (Photographer: Rebecca Noble/Bloomberg via Getty Images/Getty Images)
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. .