Mortgage Rates Rise Impacts Not Only Buyers but Builders

Charlotte, NC, September 4, 2026—”Mortgage rates continued to surge recently and have been positive YOY for the last several weeks,” reports Truist. “Comps continue to decline through the end of the year and well into 1Q27, so we expect the YOY changes to become incrementally more aggressive over the next few months even if rates start to stabilize” reports Truist.

“Investors should keep in mind that market rates for mortgages do not only impact overall housing turnover, but for the builders, increasing rates can make buydowns more expensive and thus also impact gross margins.”