While I agree that home costs are to the moon right now, I don't think that's slowing building. At least not around here. Hell, anywhere there is enough open land a builder is jamming a house in it.
6% is not that high really. A lot higher than it has been. But it isn't bad. It is though, when you're buying more than you can reasonable afford.
Would it be the end of the world if Little Johnny had to share bedroom and a bathroom with Little Jimmy? Probably not. People are going to have to stop buying a 4800 SF home that stretches the budget and buy a 2500 SF home that doesn't.
I remember i got 5.75 in 2006 when buying my first house and that was about as low as you could get then. My mom reminded me what hers was during the Carter years.
Bought our last home in 2019, 3.75 for 30, i finally got off my butt when I saw those rates get around 2% and refinanced. I had to put a little down to keep the payments the same but I'm at a 15 year fixed now.
Problem is, folks want that 400k house, but now they can only afford that 250k house, and hurts their feelings. But they have no problem dropping 2k a month for a 2 bedroom apartment. That's what a decent apartment goes for around here.
I know someone who just built a million dollar home, and his buck from last season that is has been ready since May is still not picked up, doesnt have the extra 600 bucks to pay the taxidermist. They want everyone to think they are high cotton, but in reality, they are having a hard time making ends meet due to their choices.
