Survey Reports Drop in Builder Confidence in September
According to reports from the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), builder sentiment fell for the ninth straight month in September as the combination of elevated interest rates, persistent building material supply chain disruptions, and high home prices continue to take a toll on affordability. Builder confidence in the market for newly built single-family homes fell three points in September to 46, the lowest level since May 2014 with the exception of the spring of 2020, according to the reports from NAHB/Wells Fargo HMI.
“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, a home builder and developer from Savannah, Georgia. “In another indicator of a weakening market, 24% of builders reported reducing home prices, up from 19% last month.”