The September housing market index released by the National Association of Home Builders (NAHB) and Wells Fargo fell from the previous month to the lowest level in five months. Rising mortgage interest rates continue to drive many prospective buyers out of the market.
The September index decreased by 5 points from the previous month. In August, it was down 6 points. The combined two-month decline was the largest in about a year.
“High mortgage rates are clearly hurting homebuilder confidence and consumer demand,” NAHB Chief Economist Robert Dietz said in a statement. The number of people who procrastinate is increasing.”
According to NAHB, about one-third of respondents said they cut prices to boost sales. This is the largest percentage since the end of 2022.
All NAHB indexes declined in September. The current situation index was 51 (57 in the previous month) and the outlook index was 49 (55 in the previous month), both the lowest levels in several months. The prospective purchaser footfall index was 30 (35 in the previous month), the lowest level since February.
See table for detailed statistics.
Original title: US Homebuilder Sentiment Drops to Five-Month Low on Higher Rates, US Homebuilder Sentiment Gauge Falls to 45 in Sept. (excerpt)
(Add and update statistics details)