Rate Sheet, AI, Verification, Servicing, Flood Tools; Primer on What Builders Can and Can't Do

Market Overview - Home prices in Southern Nevada have slightly decreased over the past year, indicating a cooling but stabilizing housing market [1] - The U.S. is experiencing a significant inventory of unsold homes, with 121,000 completed single-family homes sitting unsold as of July 2025, a 20% increase from 2024 [10][11] - Zillow estimates a shortage of 4.7 million housing units, while the National Association of Realtors estimates a 5.5 million-unit shortage [11] Builder Activity - D.R. Horton is acquiring SK Builders, expanding its presence in South Carolina [10] - Despite high inventory levels, homebuilders face challenges due to high interest rates, which are limiting potential buyers [11][12] Investor Influence - Investors purchased approximately 30% of single-family homes earlier in 2025, often renting them out instead of selling to individual buyers [12] - The rising costs of construction materials, labor, and financing are contributing to elevated home prices, making them unaffordable for many buyers [12] Government and Regulatory Factors - The Federal Housing Finance Agency (FHFA) may adjust affordable housing goals to encourage more construction and support financing for affordable housing projects [13][14] - Government regulations account for nearly 24% of the final price of new single-family homes, impacting the overall housing supply [17] Economic Conditions - The mortgage market is experiencing volatility due to potential tariff threats from President Trump, affecting bond yields and mortgage-backed securities [20] - Upcoming economic indicators, including jobless claims and the NAHB Housing Market Index, are expected to influence market conditions [21]