BUILDER CONFIDENCE UNDERWATER AFTER FALLING FOR EIGHTH CONSECUTIVE MONTH

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Key Points

  • U.S. builder confidence fell again in August as elevated interest rates, ongoing supply chain problems and high home prices continue to exacerbate housing affordability challenges, according to NAHB.
  • The NAHB Housing Market index declined to a reading of 49 this month from 55 in July.
  • This is the eighth consecutive month that builder sentiment has declined and the lowest reading since May 2020.
  • The HMI index gauging current sales conditions fell from 64 to 57, the index measuring traffic of perspective buyers dropped 5 points to to 32, and the index for sales expectations in the next 6 months dropped 2 points from 49 to 47.
  • “Tighter monetary policy from the Federal Reserve and persistently elevated construction costs have brought on a housing recession,” said NAHB Chief Economist Robert Dietz. “The total volume of single-family starts will post a decline in 2022, the first such decrease since 2011.”
  • The Right Facts will continue to monitor the housing market.
Source