Homebuilder sentiment has cratered in the United States amid rising interest rates and a slowing economy.
The National Association of Home Builders (NAHB) Housing Market Index weakened to 46 in September, down from 49 in August. This was also below the market forecast of 47 and represented the lowest reading since May 2020. Plus, it was also the nine consecutive monthly drop.
“Buyer traffic is weak in many markets as more consumers remain on the sidelines due to high mortgage rates and home prices that are putting a new home purchase out of financial reach for many households,” said NAHB Chairman Jerry Konter in a statement.
Housing starts and building permit data will also be released for August on Tuesday. The numbers are not expected to be positive.
If you have been missing what has been happening in the U.S. real estate market, here is a snapshot:
- Pending Home Sales for July: -1% month-over-month in July
- New Home Sales for July: -12.6% to 511,000 units
- Building Permits for July: -0.6%
- Housing Starts for July: -9.6%
- 30-year Mortgage Rate: 6.02%
- Mortgage Applications: -1.2% in the week ending September 9
Will the U.S. housing market repeat what occurred during the real estate crash more than a decade ago?
While the numbers point to a significant downturn, it might not be like what happened in 2006 and 2008, mainly because subprime does not account for a large portion of the real estate market and delinquency rates are not what they were.
Leave a Comment