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Rick Palacios Jr. reports that the new home market faced severe challenges in September as mortgage rates climbed, significantly affecting builders in U.S. communities with a high concentration of H-1B visa buyers.
A Dallas homebuilder noted a 70% reduction in home sales within neighborhoods heavily reliant on H-1B visa holders, highlighting the outsized impact of rate increases on these areas.
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In a recent client webinar, Rick Palacios Jr. outlined five key drivers pushing interest rates higher. He has also reported that moveout rates for home purchases at some apartment REITs are now lower than post-GFC lows, based on current moveout data. These previous signals set the stage for the latest pressures facing new home sales.