US single-family homebuilding nosedived in July, falling 16% year-over-year as higher mortgage rates kept the market frozen.
High mortgage rates and a dire supply shortage have sidelined potential buyers. While those would-be buyers stay put, many are now relying on buy now, pay later services to help them stay afloat: Affirm, the pay-later app, is providing cash-strapped tenants loans to help out with rent payments.
There are some signs of life in the industry. Home Depot posted a strong quarter, despite a slowdown in sales. But those numbers don’t exactly showcase consumer resilience. The earnings were buoyed by revenue from smaller projects — a paint job or a minor kitchen revamp. Customers “remain under pressure,” one Home Depot executive said Tuesday.
