High mortgage rates are a contributing factor to the weakening of builder confidence.
The NAHB has reported that builder confidence in the market for newly built single-family homes has dropped below the key break-even measure of 50 for the first time in five months due to persistently high mortgage rates. According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), builder confidence fell five points to 45 in September.
The NAHB’s Chief Economist, Robert Dietz, stated that a growing number of buyers are choosing to delay home purchases until long-term rates decrease. Additionally, shelter inflation experienced a 7.3% year-over-year gain in August, compared to a 3.7% overall consumer inflation reading. For more information, you can read the full report on the NAHB website.
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