Daniel Acker | Bloomberg | Getty Images
A contractor stacks roofing materials while working at a home under construction at the Toll Brothers community at Bowes Creek Country Club in Elgin, Illinois.
The heat in housing demand is cooling across the nation and at most price points, but luxury really feels the cold.
"In November, we saw the market soften further, which we attribute to the cumulative impact of rising interest rates and the effect on buyers' feeling of well-publicized reports of a real estate slowdown," said CEO Douglas Yearley Jr. in a note.
He noted that the same thing happened in 2013, when mortgage rates rose due to the "tantrum taper" – the result of the Federal Reserve which indicated that it would reduce the amount of money it was channeling into the economy. Domestic sales fell when rates rose and only recovered, however, when interest rates declined.
"We have witnessed a slowdown in housing all year, but this is the first time Toll Brothers recognizes it in a press release," said Peter Boockvar, Bleakley Advisory Group Chief Investment Officer. "I think that up to this point they felt like they were somehow immune to the upper end of the market, where people are less sensitive to changes in mortgage rates, so that's what I really liked is the recognition of something we've known all year that is now influencing their customer base. "
The reports on the most recent homes to which Yearley alludes come from every corner of the housing sector: builders, realtors, the US census and those who finance home loans. Most aim for a weaker convenience, which is now a low decade according to different sources.