Homebuilder sentiment slipped for a second straight month in February as builders cited persistent affordability pressures, including high house price-to-income ratios, mortgage rates above six percent, and elevated land and construction costs.
Housing starts declined 9.8 percent in May to the slowest pace since the pandemic-striken June 2020.
Homebuilders see the election as opening up room for more construction, possibly easing the affordability crisis that has gripped America during the Biden era.
The fourth consecutive monthly gain pushed the homebuilder sentiment index into positive territory for the first time since last year.
Sentiment declined for a second consecutive month in September.
The National Association of Home Builders (NAHB) said on Tuesday that its monthly index of homebuilder confidence jumped five point to 50 in May, the fifth consecutive monthly gain and the strongest reading since July 2022.
The National Association of Home Builders (NAHB) monthly confidence index rose for the third month in a row.
A much deeper slump in home builder sentiment took hold in October.
Home prices are likely to keep declining as interest rates climb higher.
Homebuilder sentiment weakened for the eighth straight month, falling into negative territory for the first time since the pandemic first hit.
The worst reading since the depth of the early days of the pandemic and lockdowns.
The infamous Twitter Fail Whale came to mind today when shares of Twitter fell below where they had closed on the day before Elon Musk announced his acquisition of a big stake in the company.
Skyrocketing prices for materials and widespread shortages are behind the surprise decline in building activity in January.
Another sign that supply chain issues, inflation, and omicron are further disrupting the economy.
Strong demand and a moderation in the price of lumber boosted homebuilder sentiment in September.
