Builder KB Home (KB) caters to first-time homebuyers, and that’s exactly the segment of the market that is facing tougher headwinds as interest rates rise, making homes less affordable, Seeking Alpha reported.

A report from Seeking Alpha goes on to say:

“Essentially, higher rates are making homes less affordable, thereby crowding out the marginal buyer. Mortgage demand has fallen so dramatically that Citigroup (C), JPMorgan Chase (JPM) and Wells Fargo (WFC) have each cut over 2,000 mortgage bankers in the past month. I believe this phenomenon will disproportionately impact KB Home (KBH) as the firm caters more to first-time homebuyers. The drop in home affordability the past six months is truly astonishing.”