The consensus view in the market is that the U.S. Federal Reserve will hold rates steady at the March meeting, with most economists expecting the first rate cut to come in June. The central bank is also expected to continue cutting rates in the second half of the year with the Federal policy meetings in July or September.
Just Keep Building
What does this news mean for homebuilders? Just keep building. The U.S. Census Bureau has reported 1.4 million new housing starts in 2023, but the JBREC projection is that we needed to build 1.8 million housing units just to keep pace. New house starts in 2024 are already 13.4% lower than the previous 120-month average, so the time to build is now.
New Construction on the Rise
Redfin reported that nearly 32% of homes sold last quarter were new construction. Due to the low supply of older homes listed for sale, new-construction homes are growing in demand. Homebuilders can provide a crucial solution to the housing market shortfall by constructing new homes or build-to-rent properties.
Build With Us
Builders Capital leads the way as the #1 private construction lender nationwide and as the Builders Most Valued Relationship, we’re here to help you build more homes.
Our online borrower portal allows 24-hour access to loan details and draws can be made anytime so vendors can be paid on the borrower’s schedule.
Plus, our revolutionary Material Order Rebate (MOR) Program can help homebuilders offset their loan origination fees* when they purchase discounted building materials through our BIMQuote platform. Learn more about MOR today!
*Partial credits may apply, dependent on material orders. Not available for all projects or locations. Servicing and processing fees may apply.
