US Builder Sentiment Declines in August

On Tuesday (8-15-23), 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 in August to a reading of 50. The drop marks the end of a string of seven consecutive monthly gains.

In August, all three HMI components posted losses.

1. The HMI index gauging current sales conditions declined 5 points to a reading of 57.
2. The HMI component that charts sales expectations in the next six months declined 4 points to a reading of 55.
3. The HMI component that measures traffic of prospective buyers fell 6 points to a reading of 34.

Looking at the three-month moving averages for regional HMI scores, the Northeast increased 4 points to a reading of 56; the Midwest and South were unchanged at readings of 45 and 58, respectively; and the West posted a 1-point decline to a reading of 50.