Housing Market Stalls as Mortgage Rates Bite

The housing market is facing a warning sign as high mortgage rates have raised the bar for homebuyers, making it difficult for everyday families to afford homes.

KB Home, one of America's largest homebuilders, reported that its average buyer's household income was $134,000 last quarter, highlighting the issue of affordability in the housing market.

The high rates have led to a surplus of resale supply, making it harder for builders like KB Home to attract buyers with price cuts and rate buydowns. This trend is expected to put pressure on big-box retailers such as Home Depot and Lowe's Companies, which could see reduced sales if people stop buying new homes.

Meanwhile, Meta's AI assistant, Muse, has been making waves in the travel industry by allowing users to book flights and hotels directly through its platform. This development has caused a decline in stock prices for companies like Expedia, Booking, and Airbnb, as they risk losing their share of the transactional business.