New homebuilders could see declines in home sales as rates increase, the Wall Street Journal asserts in a new report.

In his article, WSJ Reporter Nick Timiraos cites a source, who discusses some of the headwinds for builders ahead:

 “When mortgage rates were at all-time lows, the adverse effect of record-high prices weren’t quite as impactful,” said a recent client note from Meyers Research LLC, a home-builder consulting firm. “But with rates on the rise combined with expensive home prices, a near-term pullback in demand can be expected.”