CS: Rate pullback not yet helping new home traffic


Credit Suisse's homebuyer traffic index slumped to a near 2-year low of 36 in September from 45 in August, with agents blaming increases in rates and home prices. The recent pull-back in interest rates hasn't yet led buyers to re-engage. Investor-heavy markets like Atlanta, Phoenix, Las Vegas continue to take a hit as investors pull back (some Wall Street heavyweights like Oaktree are exiting).

Toll Bros. (TOL -0.9%) got the highest percentage of agent recommendations across all markets, with a net 34% of agents saying they would recommend the builder. Next is D.R. Horton (DHI -0.2%) with 24%. Standard Pacific (SPF -1.2%) and PulteGroup (PHM -1.1%) polled at 23%.

XHB, ITB, PKB.

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Comments (1)
  • s.khan
    , contributor
    Comments (80) | Send Message
     
    The news has to be taken with a pinch of salt. Two
    builders, Lennar and K.B.Homes reported big increases
    in their sales and backlog recently. The potential buyers
    need to understand that the mortgage rates,4.3% currently,
    are low and won't be seen again for a long period of time.
    If they really want to buy it is a good time. In six months
    they may face higher rates and priced out of the market.
    Rents are going up too. If more people decide not to
    buy but rent, there will be further spike.
    No doubt, with temporary or part time jobs and high
    students loan coupled with high down payment it is
    tough.
    7 Oct 2013, 05:11 PM Reply Like
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