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Homebuilder Sentiment

Home Builder Sentiment

As material costs and interest rates rise, home builders are pulling back.

Homebuilders are rapidly losing confidence in their ability to turn a profit on new houses, Nathan writes.

Homebuilder sentiment experienced its second-largest one-month drop in July, according to the National Association of Home Builders/Wells Fargo Housing Market Index released Monday.

The gauge — which has been reported monthly since 1985 — fell from 67 in June to 55 in July, trailing only April 2020 as the largest one-month decline.

What they’re saying: “Production bottlenecks, rising home building costs and high inflation are causing many builders to halt construction,” NAHB chairman Jerry Konter, a home builder and developer from Savannah, Georgia, said in a statement.

Axios Closer By Hope King and Nathan Bomey · Jul 18, 2022