Rising mortgage rates and high construction costs stemming from a dearth of construction workers, a lack of buildable lots and ongoing shortages of distribution transformers put a chill on builder sentiment in August.
U.S. construction spending increased in June and the prior month's data was revised higher, boosted by spending in both single-family and multifamily housing projects.
Rising mortgage rates in June, coupled with elevated construction costs and supply chain issues for electrical transformers, acted as headwinds on the new home sales market.
The two brands have been partners since 2020 and have extended their agreement for an additional three years, giving Taylor Morrison’s homebuyers in Georgia, North Carolina, Florida and Texas access to Cosentino surfaces.
SCI Flooring operates as SCI Floor Covering in Detroit, Michigan; MC Flooring in Kansas City, Missouri; and Eastpointe Interiors in Grand Rapids, Michigan.
Builders are feeling cautiously optimistic about market conditions given low levels of existing home inventory and ongoing gradual improvements for supply chains.
A lack of existing inventory and stabilizing mortgage rates helped push single-family production up to the highest rate thus far in 2023 even as builders continue to deal with high construction costs, persistent labor shortages and tightening credit conditions for construction loans.