Mortgage rates have declined for the third consecutive week, dropping to 6.87%. This trend coincides with a significant slowdown in housing starts and building permits, which have plummeted to their slowest pace since 2020. National Association of Home Builders (NAHB) CEO Jim Tobin joins Market Domination to provide his outlook on the housing sector.

Tobin identifies two key factors contributing to the deceleration in new home construction. First, mortgage rates, while beginning to fall, have remained elevated for an extended period. Second, he points to challenges in accessing "capital to build more homes" among private builders.

Regarding the future trajectory of mortgage rates, Tobin expresses optimism: "We think by the end of the year, we're fully in the 6% range for mortgage rates. It's really going to take more signals from the Fed that they are in fact going to cut rates."

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This post was written by Angel Smith