Now is the time for prospective homebuyers to look at purchasing a home, according to the incoming chairman of the National Association of Home Builders.
Granger MacDonald said homebuyers need to take advantage of the current economic climate if they are in the market for a new home.
“Nationally, we have been blessed with low interest rates,” MacDonald said during an interview with GSA Business Report. “We know they are going up and I would highly encourage anyone looking at a home to get on it.”
The annual meeting consisted of meetings on new codes, a discussion on the forecast of building permits and breakout sessions on various trends in Greenville and Spartanburg.
The Federal Open Market Committee has hinted at a potential increase in the federal funds rate. A recent report by The Wall Street Journal indicated futures market traders have suggested a 74% probability that the Federal Reserve initiates a rate hike by the FOMC's final meeting of the year Dec. 13-14.
MacDonald said the impact of an interest rate hike will be felt by homebuilders nationwide. He said even if the increase is a quarter of a percent, that eliminates 240,000 qualified homebuyers from being able to afford a new home.
The upcoming presidential election has also added some uncertainty as to the future of new home construction and homebuying, he said. The U.S. Department of Commerce reported new single-family home sales increased by 3.1% in September and they have jumped 29.8% year over year.
Asked about the potential impacts of the presidential election on the homebuilding community, MacDonald said, “If I knew the answer to that question, you’d be voting for me this election.”