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3mo ago

US Homebuilder Sentiment Slides to Lowest Level Since 2022

Builders cut prices at the highest rate on record, citing high mortgage rates coupled with economic uncertainty that sideline buyers.

Image
Construction employees work in a multifamily housing project in San Diego, California, U.S., September 19, 2023. REUTERS/Mike Blake/ File Photo
A townhouse under construction in the Licton Springs neighborhood of Seattle last month. Photo: M. Scott Brauer/Bloomberg via Getty Images
A "For Rent, For Sale" sign is seen outside of a home in Washington, U.S., July 7, 2022. REUTERS/Sarah Silbiger/ File Photo

Overview

  • The NAHB/Wells Fargo Housing Market Index dropped to 32 in June, marking its weakest reading since December 2022.
  • In June, 37% of builders reduced home prices—the highest share since the NAHB began tracking the metric—with an average cut of 5%.
  • Mortgage rates remain elevated, with the 30-year fixed rate averaging 6.84%, according to Freddie Mac.
  • Single-family housing starts rose 0.4% in May even as building permits fell 2.7%, signaling softer construction ahead.
  • NAHB chief economist Robert Dietz forecasts a decline in single-family starts for 2025 amid tariff-driven cost pressures and ongoing market uncertainty.