Key Points

  • U.S. builder confidence fell again in December as the combination of high mortgage rates, elevated construction costs, and diminishing consumer demand due to the elevated home prices have dragged builder sentiment down for the entirety of 2022.
  • The NAHB Housing Market index declined to a reading of 31 this month from 33 in November.
  • This is the twelfth consecutive month that builder sentiment has declined and the lowest reading since mid-2012 with the exception of the spring of 2020.
  • The HMI index gauging current sales conditions fell from 39 to 36, the index measuring traffic of perspective buyers held steady at 20, and the index for sales expectations in the next 6 months increased 4 points to 35.
  • “In this high inflation, high mortgage rate environment, builders are struggling to keep housing affordable for home buyers,” said NAHB Chairman Jerry Konter.
  • The Right Facts will continue to monitor the housing market.