10. Interest

Interest is capitalized to inventories while the related communities are being actively developed and until homes are completed. As our qualifying assets exceeded our outstanding debt during the three and nine months ended September 30, 2018 and 2017, we capitalized all interest costs incurred during these periods, except for interest incurred on our Repurchase Facilities.

Our interest costs are as follows (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2018		2017		2018		2017
Interest capitalized beginning of period	$	47,797	$	35,668	$	41,762	$	28,935
Interest capitalized during period		16,109		13,338		43,387		31,902
Less: capitalized interest in cost of sales		(12,334)		(8,794)		(33,577)		(20,625)
Interest capitalized end of period	$	51,572	$	40,212	$	51,572	$	40,212