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Homebuilders surveyed recorded new cycle lows across almost all key metrics in October, according to a summary by Rick Palacios Jr. Unsold inventory rose again in the period. Palacios added that while homebuilders received a reprieve following the U.S. midterm elections, the current day’s Consumer Price Index reading and hawkish commentary from the Federal Reserve have negatively affected hope for the housing market in 2027.
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Rick Palacios Jr. previously reported that homebuilders have boosted sales since late 2022 by using costly mortgage rate buydowns to qualify buyers. In September, new home sales fell 3.4% year over year, with bulk sales influencing the totals and potentially rising in the near term, according to Palacios data. These developments follow persistent signs of stress in the sector.