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Businessweek

Builders Are Slashing Prices to Sell Homes in Fast-Cooling US Markets

The rapid rise in mortgage rates leads to discounts in once-hot boomtowns across the Sun Belt.

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On the edges of US Sun Belt suburbia, the wait lists for new houses are gone. And homebuilders are doing something they haven’t done in years: slashing prices.

The fastest-rising mortgage rates in decades have cooled demand so abruptly in many hotspots that it took the industry by surprise. Builders that were artificially limiting sales and auctioning houses to the highest bidder now have inventory to move.