August marks the eighth month in a row that builder confidence has decreased, according to the most recent National Association of Home Builders (NAHB)/ Wells Fargo Housing Market Index (HMI) report. Things like the continuous rise is interest rates, supply chain inconsistencies, and elevated home prices are all contributing to this decrease in builder confidence.

 

This is the first time since May of 2020 that the HMI has reported that the market for single family housing has been below the break-even measure of 50, reaching a level of 49 points. After summarizing the current market sentiment, NAHB Chairman Jerry Konter, a home builder and developer from Savannah, Georgia, detailed what could be a dark omen for housing, "And in a troubling sign that consumers are now sitting on the sidelines due to higher housing costs, the August buyer traffic number in our builder survey was 32, the lowest level since April 2014 with the exception of the spring of 2020 when the pandemic first hit."
https://www.nahb.org/news-and-economics/press-releases/2022/08/builder-confidence-underwater-after-falling-for-eighth-consecutive-month