National Association of Home Builders (NAHB) CEO Jim Tobin said mortgage rates are “eating up all the good news” on housing, even as he insisted the American Dream of homeownership is “absolutely not dead.”
Tobin on Rates and the American Dream
Tobin spoke in an interview on Fox Business’ “Varney & Co.” on Monday. Host Stuart Varney said NAHB predicts single-family home building will fall at least 4% this year and 3% next year, and asked whether mortgage rates at 7.5% explain it. Tobin said, “It is unfortunate that mortgage rates just eating up all the good news out there on housing. It’s really a challenge for us.”
He said the administration has had “some good regulatory and legislative victories,” but higher rates are “just gobbling up the headlines.”
Varney said luxury builders are doing okay while those serving the middle class are hurting. Tobin said, “It’s that lower end tier that we really have to help,” adding that regulatory burdens need to come out of the way to lower housing costs.
Asked about claims that the American Dream of home ownership is dead, Tobin said, “I couldn’t disagree more. It is absolutely alive and well, it may be delayed, but it is absolutely not dead.” He added, “This is about supply. This is about building.” He said home ownership “will always be the gateway to the middle class in this country.”
Tobin urged buyers to act. “Now is the time to buy,” he said. “If you can afford the mortgages of today, the homes will be more affordable today than they will be in five years.” He added, “if you’re waiting to time the market you will always be wrong.” When Varney said Tobin had to say that as someone who represents home builders, Tobin replied, “No, no, I believe that wholeheartedly.”
Peter Schiff Weighs In
Economist Peter Schiff also commented on the housing market in a post on X on Monday. He wrote: “The Housing Market Index fell to 29 in Oct., the lowest since 2012. Inflation, tariffs, & immigration policy have sent construction costs soaring, as rising mortgage rates make higher-priced homes even more expensive to buy. This will be the worst housing market in U.S. history.”
Housing Strains Build
The NAHB/Wells Fargo Housing Market Index, a monthly survey of builder confidence, fell three points to 29 in October, the lowest reading since June 2012. The 30-year fixed mortgage rate averaged 7.40% last week, the highest in nearly three years, according to Freddie Mac.
Schiff warned last week that the housing market is a “disaster waiting to happen” after shares of Fannie Mae (OTC:FNMA) and Freddie Mac (OTC:FMCC) fell sharply. Redfin data showed 14.5% of home-purchase agreements fell through in September, the highest rate for any September on record, while pending home sales dropped 4% month over month.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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