US Homebuilder Confidence Falls to 35 for 14th Month Below 40 as Buyers Pull Back
Updated
Updated · KOMO News · Jun 15
US Homebuilder Confidence Falls to 35 for 14th Month Below 40 as Buyers Pull Back
3 articles · Updated · KOMO News · Jun 15
Summary
The NAHB/Wells Fargo Housing Market Index slipped 2 points to 35 in June, leaving builder sentiment in pessimistic territory and extending a sub-40 streak to 14 months, the longest such run since 2011-12.
Buyer affordability drove the weakness: the prospective-buyer traffic gauge fell to 25, while builders cited high mortgage rates, elevated home prices and regulatory costs that NAHB says add more than 26% to a typical single-family home's price.
Nearly one-third of builders cut prices in June, with a typical reduction of 6%, and almost two-thirds used sales incentives; incentive use has stayed above 60% for 15 straight months.
The slump could curb housing starts and new-home supply over the next 6 to 12 months, even as the average 30-year mortgage rate has eased to 6.52% and resale supply remains tight.