by Calculated Risk on 9/18/2023 10:05:00 AM

The National Association of Home Builders (NAHB) reported the housing market index (HMI) was at 45, down from 50 last month. Any number above 50 indicates that more builders view sales conditions as good than poor.

From the NAHB: High Mortgage Rates Continue to Weaken Builder Confidence

Persistently high mortgage rates above 7% continue to erode builder confidence, as sentiment levels have dropped below the key break-even measure of 50 for the first time in five months.

Builder confidence in the market for newly built single-family homes in September fell five points to 45, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released today. This follows a six-point drop in August.

“The two-month decline in builder sentiment coincides with when mortgage rates jumped above 7% and significantly eroded buyer purchasing power,” said NAHB Chairman Alicia Huey, a

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