Home Builder Sentiment Drops for Fourth Month

NAHB/Wells Fargo Housing Market Index: Builder confidence in the new single-family home market fell 2 points to 77 in April; a year ago, it was at 83.

WASHINGTON – According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index, builder confidence in the market for new single-family homes fell 2 points to 77 in April.

The reading marks the fourth straight month of declines for the index, which stood at 83 in April 2021.

Of the index’s three components, current sales conditions fell 2 points to 85. Buyer traffic dropped 6 points to 60, and sales expectations in the next six months increased 3 points to 73 following a 10-point drop in March.

NAHB Chairman Jerry Konter said, “Despite low existing inventory, builders report sales traffic and current sales conditions have declined to their lowest points since last summer as a sharp jump in mortgage rates and persistent supply chain disruptions continue to unsettle the housing market.”

Regionally, on a three-month moving average, builder sentiment rose 1 point to 72 in the Northeast, and fell 3 points to 69 in the Midwest, 2 points to 82 in the South, and 1 point to 89 in the West. 

Source: CNBC (04/18/22) Olick, Diana

© Copyright 2022 INFORMATION, INC. Bethesda, MD (301) 215-4688

Source link