New homebuilder confidence data for January stands at 47 despite mortgage rates surpassing a daunting 7%.
Jim Tobin, CEO of the National Association of Homebuilders (NAHB), joins Josh Lipton on Request a trend to discuss the current real estate market (XLRE, XHB) and the challenges faced by buyers, expecting rates to remain high through 2026.
Regarding rising mortgage rates, Tobin says, “It’s going to keep the market cool; This will certainly keep the existing real estate market bottled up, and it will keep buyers who have been looking forward to the spring real estate season somewhat on the sidelines. longer.” Tobin notes that this will continue until “we get a little more certainty with the new Trump administration.”
Tobin forecasts a regulatory environment over the next four years under Trump and believes that “we’re going to see an easing of some of the more burdensome federal regulatory environments,” which he believes will help reduce housing costs.
Watch the video above to hear Tobin also discuss the ongoing wildfires in Southern California and what the extended phase of rebuilding and recovery might look like.
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This article was written by Josh Lynch
