NAHB Reports Continued Slow of Housing

The NAHB/Wells Fargo Housing Market Index continues to fall
by Staff

The NAHB Housing Market Index is now at a level of 67, as inflation grows higher.

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The NAHB Housing Market Index is now at a level of 67, as inflation grows higher.

As inflation and mortgage rates continue to rise, the traffic of home buyers slows, which in turn lowers builder sentiments. As of the month of June, the National Association of Home Builders (NAHB) reports that their NAHB/Wells Fargo Housing Market Index (HMI) has lowered two points down to 67. The HMI has not fallen so low since the June of 2020, and the six months of decline previous to June indicate the market will continue to lower. Inflation as well as supply chain issues are reported by the NAHB to be the main cause of this lowering traffic. The NAHB also predicts a small recession in 2023 based on the financial issues of the economy at present in addition to ever increased uncertainty. They also predict that unemployment rate will increase to above 5% due to higher interest rates.