
The National Association of Home Builders (NAHB) Housing Market Index fell six points to 34 in November, keeping builder sentiment below the key breakeven level of 50. This marks the fourth straight monthly decline, as sentiment has fallen 22 points since July, reaching the lowest level since last December. All three components of the index moved lower, with current sales conditions down six points to 40, future sales expectations dipping five points to 39, and buyer traffic falling five points to 21.
What’s the bottom line? High mortgage rates were a key reason cited for declining builder confidence, yet “recent macroeconomic data point to improving conditions for home construction in the coming months,” per NAHB Chief Economist Robert Dietz. Plus, there was other good news for buyers, as more builders (36%) reported cutting prices, which is the highest percentage in a year.