Since that time, uncertainty has reemerged as the common theme. Two key drivers of our end-market performance, mortgage rates and existing home sales have yet to trend favorably. The average 30 year fixed mortgage in the US is now at a 23 year high, meaning that most buyers in the market aged 50 or younger have never experienced home buying with financing cost at this level. Large new homebuilders are coping with this situation by buying down rates, but that is not helping in the existing home sale – home resale market, which is at a slowest since 2010. Given the turn for the existing homes available for sale and mortgage rates that makes switching costs much higher for existing homeowners, there was an expectation of more renovation in place, which could partially offset a lack of renovation dollars typically invested following existing home purchases.
This is yet to materialize likely as a result of higher interest rates and higher credit standards impacting home equity borrowing. We are consistently hearing from others in the building products industry including our retail customers as large and discretionary renovation projects are the areas of greatest weakness in the RRR market. With these choppy end-market dynamics still in place today, we expect ongoing headwinds in North America for both wholesale and retail volumes in Q4 with the competitive environment that continues to require consideration of trade-offs between price and volume. In the UK, we are expecting that sales will continue to remain weak through year end without the typical seasonal bump in Q4 as noted earlier. This weakness is likely to continue into 2024.
Taking all of these factors into account and excluding any impacts from our acquisition of Fleetwood, we are still expecting to achieve our original full-year guidance with consolidated net sales likely to fall within the middle of our guidance range and adjusted EBITDA likely to be closer to the bottom end of the range. Speaking of Fleetwood, in Q4, we will realize just over two months of results from the acquisition. The contribution from adjusted EBITDA is likely to be limited given upfront integration costs and purchase price accounting index. Now I’d like to turn the call back over to Howard for some closing comments.
Howard Heckes: Thanks, Russ. Clearly, our markets are going through a period of adjustment to higher mortgage rates, and homeowners are pausing to consider the best time to either move or invest in a renovation. Despite these short-term headwinds, we remain confident that other macroeconomic realities, such as the underbuilt and aging housing stock, and significantly improved levels of home equity will ultimately drive a resurgence of demand in both new construction and RRR. We also believe strongly that secular tailwinds that favor the door business in particular, provided an additional tailwind as people are spending more time in their homes, many working remotely and looking for the value-added benefits that doors can provide including privacy, security, style, lights, comfort, and connectivity.
Against this backdrop, we are intently focused on controlling what is in our control by executing on our 2023 playbook initiatives and carefully managing price cost to preserve our margins and position ourselves for optimal performance when the market turns. This approach also applies to our intense focus on cash flow and our highly coordinated effort to unlock working capital across the company. I’m very pleased with the significant results our team has delivered so far this year that looking forward to achieving additional benefits in 2024. Continuing to deliver strong cash flow and maintaining a healthy balance sheet are key elements that support our capital allocation strategy. The recent acquisition of Fleetwood marks the second important M&A transaction that we have completed this year.
Both of which are helping us to reshape our business by putting emphasis on our differentiated, better and best door systems and enhancing our leadership position in the market, while moving us closer to our 2027 financial goals. Overall, we believe we are actively moving in the right direction to create value for homeowners, channel partners and investors. We are building momentum with our Doors That Do More strategy navigating through short-term market dynamics, while laying the foundation for strong performance for years to come. We continue to be excited by the opportunities we see within the approximately $27 billion North American market for door systems and we are confident that our people, our assets and our strategy uniquely position Masonite to take advantage of these opportunities.
Thank you for your continued interest and support. Now, I’d like to open the call to your questions. Operator? Question-And-Answer Session Operator [Operator Instructions] Today’s first question is coming from Michael Rehaut of JP Morgan. Please go ahead.
Unidentified Analyst: Hi guys. Thanks for taking my questions. Andrew on for Mike.
Howard Heckes : Morning, Andrew.
Russ Tiejema: Good morning, Andrew.
Unidentified Analyst: Good morning. I would just like to maybe drill down a bit and see maybe the drivers at the lowered EBITDA guidance and maybe your expectations by segment, what are kind of the big deltas versus maybe last quarter?
Russ Tiejema: Yes. Andrew, it’s Russ. I’ll take that one. I guess, I set the table by saying at the beginning of the year, we put out a full year guide that we felt was realistic. And we’re in a position to deliver against it despite what have been some ongoing macro headwinds that frankly, stand a little bit in contrast to how everyone was feeling just a few months ago, when there were some green shoots that were showing some early emergence in the housing market here in North America. But that all said, I would attribute the divergence in EBITDA to closer to the bottom end as opposed to the mid or higher end of the guide, so really two factors. One is, and we did comment on this last quarter is that material cost deflation is running lighter than we originally expected.
