Cleaning & Restoration Breaking News

Higher rates start to pinch US home builders

September 16, 2003
/ Print / Reprints /
/ Text Size+
NEW YORK, Sept 16 (Reuters) - A nearly three-month rise in mortgage rates began to erode U.S. home builder optimism in September according to a report that suggested the higher costs of borrowing may be starting to dampen home buying.

On Tuesday the National Association of Home Builders said its housing market index, a measure of builder sentiment about sales and buyer traffic, dropped to 68 in September from 71 in August.

"We are very likely to see a slowdown here. The reason is interest rates are up," said Chris Low, chief economist at FTN Financial.

Mortgage rates have steadily climbed since late June as positive economic data and guarded optimism from the Federal Reserve have fueled views the U.S. economy is improving.

Last week, U.S. housing agency Freddie Mac reported that 30-year rates were at 6.16 percent, but rates on 30-year mortgages, the most popular in the United States, have risen to as high as 6.49 percent this summer.

"The fence sitters rushed in. There's not much business to follow up on that," Low added, referring to home buyers who had been waiting for rates to go lower and instead are spurred into action by higher rates.

Components of the NAHB index showed a slight drop or were little changed. The trade group's rating for current sales of single family homes fell to 73 in September from 77 in August, while the prospect for new home sales over the next six months was 78 in September -- unchanged from August. Traffic of prospective buyers, meanwhile, fell to 50 from 55.

A reading above 50 indicates that more builders view sales conditions as "good" than "poor."

Did you enjoy this article? Click here to subscribe to i Cleaning Specialist Magazine.

You must login or register in order to post a comment.



Image Galleries

The 2014 Experience Conference and Exhibition

A look in photos at the 2014 Experience Conference and Exhibition, which was held from April 24-26 at the Embassy Suites Convention Center and Spa in Frisco, Texas.

1/27/15 2:00 pm EST

Grow Your Business and Improve Operations with New Payment Technology

Attend this free webinar to learn how new developments in payment technology can help you close more jobs, increase upselling opportunities and improve operations.


While winter is considered the "slow season" for carpet cleaners, it can also be a season of great opportunity. In this episode of The Hitman Advertising Show, John Braun offers advice for keeping revenue consistent during the cold weather months so you're thriving - and not just surviving - the winter.
More Podcasts

ICS Cleaning Specialist Magazine


2014 Nov/Dec

The Nov/Dec ICS features content on how to get better meter readings, a roundtable on truckmount development, neighborhood marketing and more. Also included is the annual Buyer’s Guide and Directory.

Table Of Contents Subscribe

Janitorial Work

In addition to residential and commercial carpet cleaning, do you do any janitorial work on the side?
View Results Poll Archive


The Carpet Cleaner's Book of Unlimited Success! (ebook)

Don’t worry about the recession or about your competition.  Now you can be the owner of over 400 ways for carpet cleaning professionals to make more money and get more jobs!

More Products


Director_Buyer.jpgThe premier resource and reference guide for the cleaning and restoration industries.

Click here to view


facebook_40.png twitter_40px.png youtube_40px.png


Truckmount.jpgEquipment listings and specifications from the leading industry manufacturers.

Click here to view