Overview
- The NAHB/Wells Fargo Housing Market Index slipped two points to 37 in January, below the 40 economists expected and under the 50 threshold for a 21st straight month.
- Index components weakened, with current single-family sales at 41, six-month sales expectations at 49, and prospective buyer traffic at 23.
- About 40% of builders reported cutting prices, the average reduction rose to 6%, and 65% offered incentives for a tenth consecutive month above 60%.
- The average 30-year mortgage rate edged down to roughly 6.06%, the lowest in about three years.
- Most survey responses preceded President Trump's directive for the FHFA to buy $200 billion in Fannie Mae and Freddie Mac bonds, while builders continued to cite labor and lot shortages plus elevated regulatory and material costs.