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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About author

Michael Anderson
Michael Anderson 249 posts

Over the course of his 30-year career, Michael Anderson has worked in the residential development industry in the Pacific Northwest, Northern California and Southern California. He has acquired residential land in excess of $300M for both land development and homebuilding entities and has overseen the construction of approximately 2500 homes. Currently, in semi-retirement, and based out of Newport Beach, CA, Michael continues to invest in and stay abreast of the land markets.

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