Hikes In Cost of Housing Now 40% Higher Than Pay Increases

Lev Borodovsky

Housing inventories (to buy or to rent) remain tight (that is why shelter inflation has been so strong), giving homebuilders reasons to be optimistic. However, will the recent spike in mortgage rates dampen some of the enthusiasm? The equity markets certainly think so, with homebuilder shares underperforming the S&P500 by nearly 4% over the past week.