While lower mortgage rates are opening the resale market, Fort Washington homebuilders Toll Brothers think it will be a boon for new homes as well, reports Paul Schwedelson for the Philadelphia Business Journal.
In recent years, higher mortgages and federal interest rates have pushed many home buyers into new construction. Toll Brothers hit record numbers in this timeframe with $2.7 billion in revenue in their last fiscal period alone.
Now, mortgage rates are the lowest they’ve been in the last year and the Federal government is expecting to cut interest rates next month. This likely means that the housing resale market will open up with a flood of new buyers.
Still, Toll Brothers CEO Doug Yearley is optimistic that this will only bolster the Fort Washington company’s numbers.
“Even as interest rates move lower, we believe the supply of homes will remain challenged due to nearly 15 years of underproduction,” Yearley said. Underproduction, he believes, will keep buyers in the new home market.
Toll Brothers has raised its goals for three consecutive quarters, and following a strong Q3, now expects to sell 10,700 new homes over the entire fiscal year.
Read more about Toll Brothers’ promising outlook at the Philadelphia Business Journal.
