Hand-Wringing Over Rising Rates
Builder Online
By John McManus
Are rising interest rates eroding demand momentum? It’s really tough to do the math, because cause-and-effect doesn’t come purely into play, and even correlations are hard to prove, because multiple variables always work as forces. As Wells Fargo analyst Steve East puts it, as interest rates go up as they’re going to do, what happens to demand is virtually a no-win for the public builders. Either way they get hit with negative investor sentiment.
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