US Builder Confidence Drops for Second Consecutive Month in June

On Wednesday, the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) reported that builder sentiment in the market for newly built single-family homes fell 2 points from May to a reading of 43 in June. This is the lowest reading since December 2023 and remains below the breakeven point of 50.

All three HMI components declined:

• The component charting current sales conditions declined 3 points to 48.
• The component measuring sales expectations in the next six months fell 4 points to 47.
• The component that gauges traffic of prospective buyers declined 2 points to 28.

The three-month moving averages for regional HMI scores evolved as follows:

• The Northeast was unchanged at 62.
• The Midwest declined 3 points to 47.
• The South posted a 3-point decline to 46.
• The West recorded a 2-point decline to 41.