Home builder confidence in housing market is waning
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.