The Daily Money: Homebuilders are struggling, even in a 'seller's market'

Homebuilders thrived during COVID as housing demand soared. But now that's calming down and homebuilders are experiencing a hangover ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

The Daily Money ALL THE MONEY NEWS YOU NEED TO KNOW   Tuesday, September 20 To quote Adele... Hello from the other side. It's me, Elisabeth Buchwald, here with the headlines you need to know.  Tomorrow the Fed is expected to raise interest rates by 75 basis points for the third meeting in a row. But why exactly does the Fed need to raise rates to begin with? As USA TODAY's Orlando Mayorquin wrote, "One of the Fed's main tools to impact inflation is the federal funds rate, which is the rate banks charge each other for overnight loans." Said differently, when the Fed raises interest rates, it's more expensive to get all different kinds of loans which eventually can help lower inflation. As for when the Fed will stop raising rates... Well, that's very much up for debate among economists.  Homebuilders are struggling Homebuilders were thriving during COVID. [Cue Oprah] You get a home, you get a home, everybody's getting a home!  But the boom is winding down as mortgage rates hit their highest levels since 2008. By many counts, it's still a seller's market though. The inventory of affordable, "starter homes" is dwindling. According to the U.S Census Bureau, the share of new homes sold priced under $300,000 was 38% in 2020, 23% in 2021, and only 11% in the first seven months of 2022. Supply isn't catching up to demand in part because homebuilders aren't making as much from these homes with material costs rising.  📰 More stories you shouldn't miss 📰 Biden says the COVID pandemic 'over': Could that put some emergency aid programs at risk? Peloton Row: Fitness maker unveils its first rowing machine Beyond Meat exec Doug Ramsey arrested: Charged for biting man's nose after a college football game Elisabeth Buchwald is a personal finance and markets correspondent for USA TODAY. You can follow her on Twitter @BuchElisabeth. Builders dealing with COVID 'hangover', says NAHB president Builder confidence in the market for newly built single-family homes falling fast. Single-family permits are now down 25% from their peak in February. Why the Fed raises interest rates and more questions answered Is it appropriate to display your political affiliation at work? Ask... Peloton Row: Fitness maker unveils its first rowing machine Biden says the pandemic 'over.' Could that put some aid programs at... 200,000 Nissan pickups recalled for risk of rolling away while in park Caregivers across America struggle to get by OPINION Gen Z's new Google: Why young people search TikTok American Airlines says goodbye to first class, hello suites When travel plans booked via Expedia go wrong, who is responsible?   Problem viewing email? View in browser Unsubscribe • Manage Newsletters • Terms of Service • Privacy Policy/Your California Privacy Rights • Privacy Notice • Do Not Sell My Info/Cookie Policy • Feedback © 2022 USA TODAY, a division of Gannett Satellite Information Network, LLC. 7950 Jones Branch Drive, McLean, VA 22102