The National Association of Home Builders (NAHB) / Wells Fargo Housing Market Index (HMI) is reporting that builder confidence in the market for newly built single-family homes declined 1-points to a reading of 80 in July. This is its lowest level since August of 2020, occurring after builder confidence topped at a reading of 90 last November. However, despite the decline, the reading at 80 is still signaling strong demand in a housing market lacking inventory.
In July, the three major indices were mixed. The HMI index gauging current sales conditions fell one-point to 86, the component measuring traffic of prospective buyers declined six-points to 65, while the gauge charting sales expectations in the next six months posted a two-point gain to a reading of 79. Looking at the three-month moving averages for regional HMI scores, the South held steady at 85. The West fell two-points to 87, while the Midwest moved one-point lower to 71 and the Northeast posted a four-point decline to a reading of 75.
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Builder Confidence Edges Lower as Material Challenges Persist