Market News / Story
Higher borrowing costs threaten U.S. residential construction jobs
Seeking Alpha ·
Seeking Alpha reports: Residential construction payrolls are likely to decline in 2027 if the recent jump in borrowing costs and mortgage rates persists, Pantheon Macroeconomics said. Higher corporate bond yields are raising the cost of new borrowing for large developers, while the recent increase in the funds rate is squeezing smaller builders that typically depend on floating-rate bank loans running for one-to-two years. The sharp rise in conventional 30-year mortgage rates also is…