Jeff Chaykowski

Jeff Chaykowski inquired about the mortgage rate level needed to truly catalyze demand in the Paint Stores Group, noting the recent dip in 30-year mortgage rates.

Answer

SVP of Finance and CFO Al Mistysyn suggested that mortgage rates around 6% or slightly below could drive stronger existing home turnover, referencing a bump in applications when rates dipped to 6% in October of the previous year. President and CEO Heidi Petz added that affordability is a key focus for home builders, and while rates have an impact, the industry is hoping for future shifts from the Fed.

Jeff Chaykowski asked for management's perspective on the mortgage rate level required to significantly boost demand within the Paint Stores Group, given that 30-year mortgage rates have recently decreased to approximately 6.4%.

Answer

Al Mistysyn, SVP of Finance and CFO, recalled that a dip to around 6% in October of last year led to a noticeable bump in applications. He suggested that mortgage rates around 6% or slightly below could catalyze stronger existing home turnover, driven by significant pent-up demand. Heidi Petz, President and CEO, reinforced that 6% appears to be a 'magic number' and highlighted the industry's focus on affordability, with hopes for future Federal Reserve policy shifts.