US Homebuilder Sentiment Falls to 35 as Mortgage Rates Jump More Than 50 Basis Points
Updated
Updated · Reuters · Jun 15
US Homebuilder Sentiment Falls to 35 as Mortgage Rates Jump More Than 50 Basis Points
3 articles · Updated · Reuters · Jun 15
Summary
The NAHB/Wells Fargo housing market index fell 2 points to 35 in June, missing economists’ 37 forecast and extending its run below 40 to 14 straight months.
More than 50 basis points of mortgage-rate increases since late February, along with higher construction-material costs and affordability strains, pushed builder confidence lower.
35% of builders cut prices in June, up from 32% in May, while 62% used sales incentives and the average price reduction held at 6%.
Current sales conditions slipped to 38, future sales held at 45 and prospective buyer traffic stayed weak at 25, underscoring a housing market still under pressure.
Residential investment has contracted for five straight quarters, and builders say sentiment is unlikely to recover quickly despite a U.S.-Iran deal to end the war and reopen the Strait of Hormuz.