Key Points

  • U.S. builder confidence fell again in September as the combination of elevated interest rates, persistent building material supply chain disruptions and high home prices continue to take a toll on affordability, according to NAHB.
  • The NAHB Housing Market index declined to a reading of 46 this month from 49 in August.
  • This is the ninth consecutive month that builder sentiment has declined and the lowest reading since May 2014 with the exception of the spring of 2020.
  • The HMI index gauging current sales conditions fell from 57 to 54, the index measuring traffic of perspective buyers dropped 1 point to to 31, and the index for sales expectations in the next 6 months dropped 1 point from 47 to 46.
  • “Builder sentiment has declined every month in 2022, and the housing recession shows no signs of abating as builders continue to grapple with elevated construction costs and an aggressive monetary policy from the Federal Reserve that helped pushed mortgage rates above 6% last week, the highest level since 2008,” said NAHB Chief Economist Robert Dietz.
  • The Right Facts will continue to monitor the housing market.