Builders Confidence Experiences Largest One Month Drop in its History

The latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI) indicates that builder confidence in the market for newly-built single-family homes plummeted 42 point in April to a reading of 30, from a March reading of 72. The HMI is now at its lowest point since June 2012. In prepared remarks NAHB Chairman Dean Mon said, “This unprecedented drop in builder confidence is due exclusively to the coronavirus outbreak across the nation, as unemployment has skyrocketed and gaps in the supply chain have hampered construction activities.” Any reading under 50 indicates that more builders view conditions as poor rather than good.