Homebuilder confidence fell more than expected in June as rates rise and economic activity slows, according to the National Association of Home Builders…(NAHB)
- M-O-M: The NAHB/Wells Fargo Housing Market Index fell to 67 in June, down from 69 the previous month.
- Y-O-Y: Homebuilder confidence is now down 14 points from the 81 reported in June 2021.
SWING & A MISS: Economists had projected a smaller drop to 68 and this is now the lowest level since June 2020.
All three indices fell in June with the most notable drop in the component charting traffic of prospective buyers which fell five points to 48. This is the first time this gauge has fallen below the breakeven level of 50 since June 2020…
- The index gauging current sales conditions fell one point to 77 and the gauge measuring sales expectations in the next six months fell two points to 61.
Regionally, The South took over the top spot despite a two-point decline to 78, its lowest level since July 2020…
- The West saw a nine-point decline to 74, the Northeast was down one point to 71, and the Midwest was off six points to 56 for June.
Robert Dietz, NAHB Chief Economist, said the housing market is facing both demand and supply-side challenges…
- “Residential construction material costs are up 19% year-over-year with cost increases for a variety of building inputs, except for lumber, which has experienced recent declines due to a housing slowdown. On the demand-side of the market, the increase for mortgage rates for the first half of 2022 has priced out a significant number of prospective home buyers, as reflected by the decline for the traffic measure of the HMI.”