Do they wait for lower rates in the future or borrow what they need today? It’s a question of cost versus opportunity.
The resilience of this usually interest rate-sensitive sector makes the Fed’s goal of taming inflation that much harder.
Construction in the manufacturing sector has been booming over the last year, thanks in part to Federal encouragement. That said, the U.S. economy still relies on foreign manufacturing.
Homebuilders already face higher prices for materials. More expensive loans could affect construction for years.
Often that means negotiating what gets done when.
The new administration is expected to unveil a $2 trillion proposal this month.
The Houston area lost the most construction jobs of any big city over the last year.