Widget Image
Follow PPD Social Media
Connect With PPD
Tuesday, July 23, 2019
HomeNewsEconomyRising Mortgage Rates Push Builder Confidence to Lowest Reading Since August 2016

Rising Mortgage Rates Push Builder Confidence to Lowest Reading Since August 2016

Roofers work on new homes at a residential construction site in the west side of the Las Vegas Valley in Las Vegas, Nevada April 5, 2013. (Photo: Reuters)

The NAHB/Wells Fargo Housing Market Index in November came in at 60, falling 6 points to the lowest reading on builder confidence since August 2016. The consensus was looking for 66, with forecasts ranging from 66 to 69 after a 68 reading in October.

[su_table responsive=”yes”]

Released On 11/19/2018 10:00:00 AM For Nov, 2018

Prior Consensus Consensus Range Actual
Housing Market Index 68  68  66  to 69  60 

[/su_table]

“For the past several years, shortages of labor and lots along with rising regulatory costs have led to a slow recovery in single-family construction,” Robert Dietz from NAHB said. “While home price growth accommodated increasing construction costs during this period, rising mortgage interest rates in recent months coupled with the cumulative run-up in pricing has caused housing demand to stall.”

“As a consequence, builders have adopted a more cautious approach to market conditions.

All of the major HMI indices posted declines. By region, the South and West both fell to 65 with the Midwest and Northeast fell to 54 and 52, respectively.

The current sales conditions index declined 7 points to 67, the component gauging expectations in the next 6 months fell 10 points to 65 and buyer traffic posted an 8-point decline to 45.

The 3-month moving averages for regional HMI score for the Northeast rose 2 points to 58, while the Midwest fell 1 point to 57 and the South fell 2 points to 68. The West declined 3 points to 71.

The NAHB/Wells Fargo Housing Market Index has gauged builders’ perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The 30-year survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.”

Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

Written by
Staff Writing Group

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

Latest comments

  • Avatar

    It’s enormous that you are getting thoughts from this
    paragraph as well as from our dialogue made here.

  • Avatar

    Deference to op, some great information.

  • Avatar

    I believe other website owners should take this site
    as an model, very clean and superb user genial design and style.

  • Avatar

    I have been exploring for a little for any high
    quality articles or weblog posts in this kind of space .
    Exploring in Yahoo I at last stumbled upon this site. Studying this information So i am glad to exhibit that I have
    an incredibly just right uncanny feeling I found out just
    what I needed. I most indubitably will make certain to do not disregard this site and give it
    a look regularly.

  • Avatar

    I gotta bookmark this site it seems handy handy.

  • Avatar

    Great post, you have pointed out some wonderful details, I too think this is a very great website.

  • Avatar

    Needed to write you this little remark so as to say thanks the moment
    again for these remarkable basics you have contributed above.
    This has been really wonderfully generous of people like you
    to present extensively just what a lot of folks could have marketed as an electronic book
    in order to make some money on their own, most notably given that you might well have tried it in the event you considered necessary.

    These thoughts additionally served as the easy way to be certain that other individuals have similar dreams like my personal own to know good deal more
    around this condition. I think there are lots of more pleasant
    moments up front for individuals who browse through your blog.

  • Avatar

    Thanks , I have just been looking for info approximately this topic for a long time and yours is the greatest I have came
    upon till now. However, what about the conclusion? Are you
    certain in regards to the supply?

  • Avatar

    Hi I am so thrilled I found your web site, I really found you
    by error, while I was browsing on Google for something else, Nonetheless I am
    here now and would just like to say thank you for a fantastic
    post and a all round thrilling blog (I also love
    the theme/design), I don?t have time to browse it all at the minute but I have
    bookmarked it and also included your RSS feeds, so when I have time I will be back to read a lot more, Please do keep up the
    superb jo.

  • Avatar

    Quality articles or reviews is the main to attract the visitors to pay a visit the site, that’s what this website is providing.

  • Avatar

    Glad to be one of several visitors on this awful website :D.

  • Avatar

    It’s difficult to find well-informed people about this subject, but you seem like you know what you’re talking about!
    Thanks

  • Avatar

    Fantastic beat ! I would like to apprentice while you amend your
    website, how could i subscribe for a blog site? The account aided me a acceptable deal.
    I had been a little bit acquainted of this your broadcast offered bright clear concept

  • Avatar

    Hi there to every single one, it’s genuinely a pleasant for
    me to go to see this web site, it consists of priceless Information.

  • Avatar

    You are my intake, I have few blogs and infrequently run out from post :
    ).

  • Avatar

    Hello.This post was really motivating, especially since I was investigating
    for thoughts on this issue last Sunday.

  • Avatar

    Health and Nutrition Tips course of the next ten years, the dietician is once again taught that green beans cause cancer, then the dietician will continue to believe this and teach her clients this as .
    http://www.thehealthvlog.com/

leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.