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By Jill Mislinski
The Housing Market Index of the National Association of Home Builders (NAHB) (NYSE: HMI) gives an idea of the builders' opinion on the relative level of current and future single-family home sales. This is a diffusion index, which means that a value greater than 50 indicates a favorable outlook for home sales; below 50 indicates a negative outlook.
The latest reading of 60, down 8 from last month, was below the forecast of 67 for Investing.com.
Here is the opening of the monthly update this morning:
"Builders report that they continue to see signs of consumer demand for new homes, but that customers are pausing due to concerns about rising interest rates." and home prices, "said NAHB President Randy Noel, custom home builder from LaPlace, La.
"In recent years, shortages of labor and land, as well as rising regulatory costs, have resulted in a slow recovery in the construction of single-detached homes," said the economist. NAHB Chief Robert Dietz. "While home price growth offset higher construction costs over this period, the rise in mortgage interest rates over the last few months, combined with the cumulative price hike, has resulted in a rise in mortgage rates. slowing demand for housing. " https://seekingalpha.com/article/4223428-nahb-housing-market-index-builder-confidence-drops-housing-affordability-issues-rise
Here is the historical series, which dates from 1985.
HMI correlates quite closely with general measures of consumer confidence. Here is a pair of overlays with the Michigan Consumer Confidence Index (up to the previous month) and the Conference Board Consumer Confidence Index.
Original position
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