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.

 

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