Following the collapse of Homebuilder confidence (due to mortgage rates, war, and immigration apparently) and the still vast gap down to homebuyer confidence…

…it should be no surprise that homebuilders are unwilling to Start building (Housing Starts -5.2% MoM in September and August revised down to a 5.9% MoM plunge) or even more forward looking, get Permits ( -0.2% MoM)…

On a SAAR basis, Starts are back near post-COVID lows while Permits are holding near the lows of a four year range…

Starts of single-family home construction decreased to the lowest level in a year.

Finally, circling back to where we started, Homebuyers have never been less enthusiastic about the American Dream… perhaps this is why…

The gap between current mortgage rates (7.5%) and the average mortgage across all of American homeowners (4.33%) is extreme to say the least, trapping sellers and buyers…

Who blinks first? With inventories of new homes at highs…

…it appears builders aren’t willing to throw good money after bad until the mortgage-rate gap narrows further.