Interest Rates To Rise, How Will New Home Construction Fare?
The Federal Reserve’s decision to stymie the rise of inflation by increasing interest rates is going to shore up demand for new residential and commercial construction throughout 2022. With inflation hitting a 40-year high of 7.9% in April, the .25% increase (with more increases on the horizon) is sure to help push that figure down BUT will make it more expensive to borrow money across many sectors - including the housing market. When it’s difficult and expensive to borrow money, it’s typical that consumers will hold off on their bigger purchases (houses, cars, backyard utopias). How did we get here? What does it all mean? How will your business fare? Let’s try to unpack it all.