Builder Confidence Drops as Housing Affordability Issues Rise
All of the major HMI indices posted declines in November 2018.
Growing affordability concerns resulted in builder confidence in the market for newly built single-family homes falling eight points to 60 in November on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). Despite the sharp drop, builder sentiment still remains in positive territory.
“Builders report that they continue to see signs of consumer demand for new homes but that customers are taking a pause due to concerns over rising interest rates and home prices,” said Randy Noel, NAHB chairman and a custom home builder from LaPlace, La.