US Builder Confidence Moves Lower for Fourth Consecutive Month in November

On Thursday (11-16-23), 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 declined 6 points to a reading of 34 in November. This marks the fourth consecutive monthly decline in the HMI. The index has now declined 22 points since July and is currently at its lowest level since December 2022.

The NAHB notes that nearly all HMI data for November was collected prior to the release of the latest Consumer Price Index, which showed that inflation is moderating.

In November, all three HMI components posted losses. The HMI index gauging current sales conditions declined 6 points to a reading of 40. The HMI component that charts sales expectations in the next six months declined 5 points to a reading of 39. The HMI component that measures traffic of prospective buyers fell 5 points to a reading of 21.

Looking at the three-month moving averages for regional HMI scores, the Northeast declined 1 point to a reading of 49; the Midwest fell 3 points to a reading of 36; the South dropped 7 points to a reading of 42; and the West posted a 6-point decline to a reading of 35.