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10-24-22 | News

NAHB Reports 10 Months Weakening Builder Confidence

The NAHB Stated that the Sentiments of Builders on the Market has been Reducing for Ten Consecutive Months
by Staff

The many factors that the NAHB points to regarding the matter includes heightened interest rates and increased home prices.

The National Association of Home Builders (NAHB) reported that the continued decrease in Builder Confidence has reached Ten Months in a row of constant decrease. The NAHB points to a number of causes such as high interest rates, roadblocks on building materials, and increased home prices. Traffic of prospective home buyers similarly fell this month; it has now reached the lowest level since 2012.

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Six months ago, builder confidence was twice as high as it is now, in the month of October. It has reached a value of 38 points, down eight points from last month. This data is from the NAHB/ Wells Fargo Housing Market Index (HMI), and is the lowest level of builder confidence since August of 2012.

NAHB Chairman Jerry Konter explained, "High mortgage rates approaching 7% have significantly weakened demand, particularly for first-time and first-generation prospective home buyers. This situation is unhealthy and unsustainable. Policymakers must address this worsening housing affordability crisis." The NAHB foresees a continued decline going forward unless housing is addressed by the federal government.

https://www.nahb.org/news-and-economics/press-releases/2022/10/builder-confidence-down-ten-straight-months-as-housing-market-continues-to-weaken

Filed Under: NAHB, ECONOMICS, BUILDER, LASN
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