NAHB Housing Market Index Signals Pessimism in August

Source: Economics Group of Wells Fargo Bank, N.A.Summary

Home Builders See Conditions Continuing to Weaken

The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) fell six points in August to 49. This past month’s drop marks the eighth consecutive decline for the HMI and marks the first time since May 2020 that this closely watched index has fallen below the key 50 breakeven level, which indicates that more home builders currently rate sales conditions as poor than those who rate conditions as good. While the August HMI drop was considerably larger than consensus estimates, it hardly comes as a surprise. Builders have been reporting weaker buyer traffic since early this year, and a rising number of builders have reported a spike in cancelations. Many are responding by reducing prices or offering incentives to help offset the impact of higher mortgage rates. READ FULL ARTICLE>>