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Data: National Association of Home Builders; Chart: Axios Visuals

Home builders’ confidence in the strength of the housing market is beginning to wane despite rising home prices.

What’s happening: The National Association of Home Builders/Wells Fargo Housing Market Index dropped for the third straight month to 79.

That’s the lowest reading since September and the third lowest since 2020.

The big picture: The NAHB attributed the decline to several factors, including shortages of lumber and other materials and an expectation of higher interest rates.

“While builders continue to report solid buyer traffic numbers, helped by historically low existing home inventory and a persistent housing deficit, increasing development and construction costs have taken a toll on builder confidence,” NAHB Chairman Jerry Konter said in a statement.

Home builder confidence in housing market is waning

Confidence is at its lowest point since September.

Housing

Home builders’ confidence in the strength of the housing market is beginning to wane despite rising home prices.What’s happening: The <a class="gtmContentClick" data-vars-link-text="National Association of Home Builders/Wells Fargo Housing Market Index" data-vars-click-url="https://nahbnow.com/2022/03/diminished-future-sales-expectations-rising-costs-lower-builder-confidence/?_ga=2.67526419.309483855.1647447401-689857052.1647447401" data-vars-item="in_content_link" href="https://nahbnow.com/2022/03/diminished-future-sales-expectations-rising-costs-lower-builder-confidence/?_ga=2.67526419.309483855.1647447401-689857052.1647447401" target="_blank">National Association of Home Builders/Wells Fargo Housing Market Index</a> dropped for the third straight month to 79.<ul><li>That’s the lowest reading since September and the third lowest since 2020.</li></ul>The big picture: The NAHB attributed the decline to several factors, including shortages of lumber and other materials and an expectation of higher interest rates.<ul><li>“While builders continue to report solid buyer traffic numbers, helped by historically low existing home inventory and a persistent housing deficit, increasing development and construction costs have taken a toll on builder confidence,” NAHB Chairman Jerry Konter said in a statement.</li></ul>

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Home builder confidence in housing market is waning

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