Macro Nugget: Housing backlogs back to pre-pandemic levels
Will 7% mortgage rates start to be felt in construction payrolls?

U.S. housing backlogs from the pandemic have now returned to pre-pandemic levels. Along with massive spending driven by the Inflation Reduction Act (IRA) and the AI boom, these factors have helped sustain construction payrolls, preventing significant declines. However, with a new president whose economic team is focused on reducing debt levels, and backlogs no longer keeping workers employed, the construction sector is likely to face challenges, especially with mortgage rates hovering around 7%.
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