U.S. Housing Market Index Unexpectedly Drops For 12th Straight Month In December
(RTTNews) - Homebuilder confidence in the U.S. has unexpectedly seen a continued deterioration in the month of December, according to a report released by the National Association of Home Builders on Monday.
The report showed the NAHB/Wells Fargo Housing Market Index fell to 31 in December from 33 in November. The decreased surprised economists, who had expected the index to rise to 36.
The housing market index declined for the twelfth straight month, falling to its lowest reading since mid-2012, with the exception of the onset of the pandemic in the spring of 2020.
"The silver lining in this HMI report is that it is the smallest drop in the index in the past six months, indicating that we are possibly nearing the bottom of the cycle for builder sentiment," said NAHB Chief Economist Robert Dietz.
He added, "Mortgage rates are down from above 7% in recent weeks to about 6.3% today, and for the first time since April, builders registered an increase in future sales expectations."
The NAHB said the index gauging current sales conditions dropped to 36 in December from 39 in November, while traffic of prospective buyers index held steady at 20.
Meanwhile, the report showed the component charting sales expectations in the next six months climbed to 35 in December from 31 in November.
The Commerce Department is scheduled to release a separate report on new residential construction in the month of November on Tuesday.
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