NAHB housing market index fell to 55 in July of 2022, down from 67 in June to the lowest reading since May of 2020. Forecasts were for a moderate fall of 65. Mortgage recently hit the highest rate since 2008 and inflation has been soaring to 40-year highs striking out affordability for many. Buyer traffic fell to 37 from 48 crushing homebuilder sales expectations in the next six months 11 points to 50.
- US July NAHB home builder sentiment 55 vs 65 expected Prior was 67
- Current single-family home sales dropped 12 points vs 77 prior
- Index of prospective buyers traffic fell to 37 from 48 prior
- Sales expectations in the next six months declined 11 points to 50.0 vs 61 prior
“Production bottlenecks, rising home building costs and high inflation are causing many builders to halt construction because the cost of land, construction and financing exceeds the market value of the home. In another sign of a softening market, 13% of builders in the HMI survey reported reducing home prices in the past month to bolster sales and/or limit cancellations”, said NAHB Chairman Jerry Konter.
The big question is how much damage has the Fed raising rates inflicted?
About NAHB/Wells Fargo Housing Market Index (HMI)
Based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. The survey asks respondents to rate market conditions for the sale of new homes at the present time and in the next six months as well as the traffic of prospective buyers of new homes.
From The TradersCommunity News Desk