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U.S. Homebuilder Confidence Unexpectedly Slips To Five-Year Low In June
(RTTNews) - Homebuilder confidence in the U.S. has unexpectedly seen a continued deterioration in the month of June, the National Association of Home Builders revealed in a report released on Tuesday.
The report said the NAHB/Wells Fargo Housing Market Index fell to 32 in June from 34 in May, while economists had expected the index to rise to 36.
With the unexpected decrease, the housing market index dropped to its lowest level since plunging to 30 at the start of the Covid pandemic in April 2020.
"Buyers are increasingly moving to the sidelines due to elevated mortgage rates and tariff and economic uncertainty," said NAHB Chairman Buddy Hughes.
He added, "To help address affordability concerns and bring hesitant buyers off the fence, a growing number of builders are moving to cut prices."
The NAHB said the latest HMI survey revealed that 37 percent of builders reported cutting prices in June, the highest percentage since it began tracking the figure on a monthly basis in 2022.
The report said the index gauging current sales conditions fell two points to 35, the component measuring sales expectations in the next six months dropped two points to 40 and the gauge charting traffic of prospective buyers also slipped two points to 21, the lowest reading since November 2023.
On Wednesday, the Commerce Department is scheduled to release its report on new residential construction in the month of May.
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