Overview
- The NAHB/Wells Fargo Housing Market Index fell two points to 37, missing forecasts for 40 and marking the 21st straight month below the 50 breakeven level.
- All subindices declined: current sales dipped to 41, prospective-buyer traffic slid to 23, and the six-month sales outlook fell to 49, its first sub-50 reading since September.
- Price concessions and incentives stayed elevated, with 40% of builders cutting prices in January at an average 6% reduction and 65% offering incentives.
- Mortgage rates eased to roughly 6.06% in mid-January, though the sentiment survey largely did not capture any effects from the newly directed $200 billion in MBS purchases.
- Builders cited labor and lot shortages plus regulatory and material costs as ongoing constraints, with confidence strongest in the Northeast and Midwest and weaker in the South and West as margins continue to compress.