BUILDER CONFIDENCE UNDERWATER AFTER FALLING FOR EIGHTH CONSECUTIVE MONTH
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.