NAHB Housing Market Index Stabilized Despite Rising Costs

NAHB Housing Market Index

NAHB Housing Market Index remained unchanged in May despite rising costs. The gauge of hombuilder sentiment held at 83 and matched the consensus forecast of the Bloomberg survey

NAHB Chairman Chuck Fowke said “Builder confidence in the market remains strong due to a lack of resale inventory, low mortgage interest rates, and a growing demographic of prospective home buyers”. Looking at the details, a measure of current sales conditions was unchanged (at 88), while the component measuring traffic of prospective buyers fell slightly (from 74 to 73).

My guess is that the trend could weaken a bit in the coming months in a context where:

1- Homebuilders will increase prices due to rising land, material and regulatory costs. In addition, it seems that labor availability could be a challenge in many markets and would result in wage pressures.

2- Mortgage rates are unlikely to decline significantly in a context where Treasury yields have recently rebounded.

3- Several reports suggest that “existing home inventory might have bottomed in March“.


Disclaimer: Mr. Christophe Barraud could not be held responsible for the investment decisions or possible capital losses of users. Mr. Christophe Barraud endeavors to provide the most accurate ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.